How could the approval of international banking facilities (IBFs) by the Fed in 1981 have reduced employment in the banking industry in Europe?

International banks are financial corporations or organisations that provide payment and lending services to international clients. Individuals as well as businesses can be clients.

The International Banking Facility is a separate section established in a US bank or a foreign bank branch. This institution provided services such as loans and bank accounts.

The following is how the Fed's approval of an international banking facility in 1981 lowered unemployment in Europe's banking industry:

The Federal Reserve's approval of the international banking facility has encouraged Country A and foreign banks to do more banking activity, i.e. open additional branches in the United States. More banking services were made available to the branches.

As banks were permitted to conduct more banking business, employment shifted from Continent E to Country US. As a result, unemployment in the banking business in the United States has decreased. The banking industry also includes international banking. It aids in the creation of a country's currency base in another country. It makes international trading easier and hence contributes to trade globalisation. The banking industry in Continent E experienced a reduction in unemployment after the Federal Reserve approved the international banking facility in 1981. This occurred because banks were allowed and approved to open branches and provide banking services.