Abstract
The Federal Reserve Board permitted the establishment of international banking facilities (IBFs) in the United States beginning in early December 1981. The Board took this action to allow US offices of depository institutions to be more competitive in conducting banking business with non-US residents. Through IBFs, non-US residents can conduct banking transactions in the United States free of any reserve requirements or interest rate limitations, and without the costs of insurance by the Federal Deposit Insurance Corporation. In addition, various states have amended their tax structures to grant IBFs relief from locally imposed taxes.2
We wish to thank Sydney J. Key and Patrick Parkinson of the Board’s staff, and Donald Mathieson of the International Monetary Fund for valuable assistance.
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© 1985 International Banking Center, Florida International University
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Terrell, H.S., Mills, R.H. (1985). International Banking Facilities and the Eurodollar Market. In: Savona, P., Sutija, G. (eds) Eurodollars and International Banking. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-07120-3_7
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DOI: https://doi.org/10.1007/978-1-349-07120-3_7
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