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. See also Offshore Banking Unit.