DEFINITION of 'Shell Branch'

A branch location of a U.S. chartered bank located outside the United States. Shell branches function as booking offices for the bank's financial transactions that happen outside the country. The ledgers of these banks are usually kept at the bank's domestic headquarters or main office. Shell branches are frequently housed inside offshore banking centers.

BREAKING DOWN 'Shell Branch'

Shell branches provide relatively cheap access to the Eurocurrency markets. Many of these branches are located in the Bahamas and Cayman Islands. They are somewhat similar to international banking facilities, which are domestic shell branches of U.S. banks.

RELATED TERMS
  1. Branch Manager

    An executive who is in charge of the branch office of a bank ...
  2. Branch Office

    A location, other than the main office, where business is conducted. ...
  3. Branch Accounting

    An accounting system in which separate accounts are maintained ...
  4. International Banking Act of 1978

    Federal banking legislation that put all domestic bank branches ...
  5. Foreign Branch Bank

    A type of foreign bank that is obligated to follow the regulations ...
  6. McFadden Act

    Federal legislation that gave individual states the authority ...
Related Articles
  1. Personal Finance

    U.S. Banks Struggle To Reduce Branches (JPM)

    The efforts by U.S. banks to get lean by reduction in branch network are getting challenged by customers who won’t give up regular visits to the branch
  2. Investing

    Bank of America Tests Automated Branches

    Bank of America offers mortgage, credit card and auto loan service through virtual channels at its new smaller branches.
  3. Insights

    The 4 Biggest Chinese Banks

    Learn how the Chinese banking system is operated and managed, and get information about the top four largest banks in the country.
  4. Insights

    A Look Behind Shell Corporations

    Shell corporations are used for many purposes, some legal and others not. Find out why they play an important role in markets.
  5. Personal Finance

    HSBC to Shut Down Half of Retail Branches in India, Shed 300 Jobs (HSBC-PA)

    HSBC will close over half of its retail branches in India to keep pace with global businesses shifting to digital channels.
  6. Investing

    Is Shell’s Credit Rating at Risk?

    Shell says its $30 billion asset disposal program could be delayed because of Brexit, potentially putting the company's credit rating at risk.
  7. Investing

    Shell Considers $40 Billion Spin-Off (RDS-A)

    Royal Dutch Shell PLC (RDS-A) is considering spinning off $40 billion worth of non-core assets.
  8. Investing

    Shell To Exit Up To 10 Countries

    Shell to continue cost cutting measures
  9. Investing

    What's a Correspondent Bank?

    A correspondent bank is a bank that acts on behalf of another bank, usually a foreign bank.
  10. Investing

    Royal Dutch Stock: A Dividend Analysis (RDS-A)

    Learn about Royal Dutch Shell's strong track record of paying dividends. Understand how a dividend cut may be a risk with low commodity prices.
RELATED FAQS
  1. Who sets fiscal policy, the president or congress?

    Discover how fiscal policy is set in the United States, including how all three branches of government can affect a given ... Read Answer >>
  2. Is it a good idea to buy mutual funds from banks?

    Mutual funds offer consumers a great way to access a professionally-managed group of assets at a relatively low cost, with ... Read Answer >>
  3. Is the banking sector appropriate for a growth investor?

    Explore the suitability of bank stocks as a sector appropriate for growth investors to consider including in their investment ... Read Answer >>
  4. What is the difference between an investment and a retail bank?

    Learn the primary differences between retail banks and investment banks by examining the business activities, type of clients ... Read Answer >>
  5. What is the average profit margin for a company in the banking sector?

    Learn what the average profit margin is for companies in the banking sector, along with other evaluation metrics often used ... Read Answer >>
  6. Who controls the Federal Reserve Bank?

    Read about the ownership and control of the Federal Reserve, the most powerful financial institution in the world and the ... Read Answer >>
Hot Definitions
  1. Efficiency Ratio

    Ratios that are typically used to analyze how well a company uses its assets and liabilities internally. Efficiency Ratios ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an ...
  4. Salvage Value

    The estimated value that an asset will realize upon its sale at the end of its useful life. The value is used in accounting ...
  5. Cryptocurrency

    A digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of ...
  6. Promissory Note

    A financial instrument that contains a written promise by one party to pay another party a definite sum of money either on ...
Trading Center