Since IBFs grew very rapidly following their creation, we may ask
where the growth came from. Rather than new business that was stimu-
lated by the existence of IBFs, it appears that much of the growth was a
result of shifting business from Caribbean shell branches to IBFs.
After the first month of IBF operation, $29.1 billion in claims on foreign
residents existed. During this same period, the claims existing at
Caribbean branches of U.S. banks fell $23.3 billion. Since this time, IBF
growth has continued with growth of Eurodollar banking in general.
As of June 2011, the IBFs surpassed the $700 billion mark, almost entirely
as interbank claims.