The Federal Reserve Board permitted the establishment of international banking facilities (IBFs) in the U.S. beginning in December, 1981. The Board took this action to allow the U.S. offices of depository institutions to be more competitive in conducting banking business with non-U.S. residents. IBF activities are free from reserve requirements and interest rate limitations and are conducted almost exclusively with non-U.S. residents. IBFs may operate from the same offices as the bank’s domestic operation, using a separate set of books. (Federal Reserve-International Banking Facilities and the Eurodollar Market)