Since IBFs grew very rapidly following their creation, we may ask
where the growth came from. Rather than new business that was stimulated 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.