popular usage, the establishment and operation of U.S.
banks in such offshore "tax
havens" as the Bahamas and
the Cayman Islands.
of member banks of the Federal Reserve System in the Bahamas
Islands as of year-end
1979 numbered 150, against 142 at year-end 1978, with reported total deposits
of $63.9 billion as of year-end 1979, an increase of 33% compared to the
$48.1 billion as of year-end 1978.
of Regulations D and Q by the Board of Governors of the Federal Reserve
Board of Governors of the Federal Reserve System believed that the establishment
of IBFs at U.S.
banking offices would enhance the international competitive position of
banking institutions located in the U.S. Parenthetically,
establishment of the IBFs was considered to be a move to attract offshore
banking business back to the U.S.