International Banking Facility - IBF

Facilities that accept deposits and offer loans to foreign customers and businesses.

Investopedia Says:
These institutions aren't bound by the interest rate restrictions and reserve requirements that domestic lenders are confined to. Therefore, they are competitive with foreign banks enjoying the same liberties.

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Special departments of U.S. Banks that are free to accept dollar deposits and make loans to foreign residents without reserve requirements or interest rate regulations. They are permitted so that U.S. Banks can pursue business in the Eurodollar market.

Separate banking center in a U.S. Domestic bank or office of a foreign bank, authorized by the Federal Reserve Board in 1981 to participate in Eurocurrency lending through a separate set of accounts. Essentially, an IBF is an in-house shell branch (a separate book of assets and liabilities) that makes loans to foreign customers, other IBFs, and U.S offices and foreign offices of an IBF parent bank. IBF deposits, limited to non-U.S. Residents, other IBFs, and banks owning an IBF, are free from reserve requirements, federal deposit insurance assessments, and some state income taxes. See also Offshore Banking Unit.