SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 8-K

                                 CURRENT REPORT

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                       PURSUANT TO SECTION 13 OR 15 (D) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

       Date of Report (Date of earliest event reported): September 4, 1998


                      INTERNATIONAL BANCSHARES CORPORATION
             (Exact Name of Registrant as Specified in its Charter)


                          Commission File Number 0-9439


                  TEXAS                            74-2157138
      (State or other Jurisdiction              (I.R.S. Employer
     of incorporation or organization)         Identification No.)

    1200 SAN BERNARDO, LAREDO, TEXAS                   78040-1359
(Address of principal executive offices)               (ZIP Code)

  (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE) (956) 722-7611

                                      NONE
          (Former name or former address, if changed since last report)


ITEM 5.     OTHER EVENTS

      On September 2, 1998, Dennis E. Nixon, Chairman and CEO of International
Bancshares Corporation ("IBC") issued a news release announcing that the company
on August 27, 1998, the Board approved the declaration of a $.40 per share cash
dividend, payable on October 15, 1998 to shareholders of record on September 30,
1998.


ITEM 7.     FINANCIAL STATEMENTS AND EXHIBITS

      c.    Exhibits

            The following exhibit is filed as part of this report:

            (99) News release of International Bancshares Corporation dated
            September 2, 1998.

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                                   SIGNATURES

      Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.


                                     INTERNATIONAL BANCSHARES CORPORATION
                                     (Registrant)


                                     By: /S/ DENNIS E. NIXON
                                             DENNIS E. NIXON, President,
                                              and Chief Executive Officer

Date: September 4, 1998

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                                  EXHIBIT INDEX


EXHIBIT                                            PAGE
NUMBER                    DESCRIPTION             NUMBER
- -------                   -----------             ------
99              News Release of International       5
                Bancshares Corporation dated
                September 4, 1998                    


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