Dictionary of Banking Terms: shell branch
shell branch
foreign branch of a U.S. chartered bank that acts as a booking office for financial transactions carried out beyond U.S. borders. Ledgers of the shell branch usually are maintained at the main office of a U.S. bank. Often located in offshore banking centers, in particular the Bahamas and the Cayman Islands, shell branches provide access at low cost to the Eurocurrency markets. An International Banking Facility is a domestic shell branch of a U.S. bank, allowing its owner to participate in the syndicated Eurocredit market without regulatory hindrance.
