K. Alec Chrystal gives a brief outline of the regulatory changes that permitted banking institutions in the United States to establish international banking facilities (IBFs) and conduct international banking business on terms similar to offshore financial centers. Chrystal describes the location and growth of IBFs and details the extent to which business has been shifted from other accounts and other locations. In addition, he explains the nature of IBF business as an integral part of the eurodollar market. Chrystal concludes that, apart from a change in geographical location, the significance of IBFs in international banking is small.