(120) New York and London are the largest of these centers, and neither the Bank of England nor the Federal Reserve has reserve requirements on Eurocurrency deposits
. (121) The Cayman Islands, a favorite offshore location for shell branches of U.S.
Eurocurrency deposits always involve a foreign jurisdiction.
The difference between the offshore Eurocurrency deposit rate and domestic onshore deposit rate for the same currency is frequently positive.
The term ([RP.sub.IBOR,i] - [RP.sub.CD,i]) represents the sum of the sovereign risk premium component of the Eurocurrency deposit rate and the difference in credit risk premia between the Eurobank deposit and the domestic bank deposit rates.
The Kb's portfolio holdings are heavily concentrated in long-term investments in international blue-chips, top-quality bonds such as US Treasuries or UK gilts, eurocurrency deposits
and in real estate in Europe and the US.
A Eurodollar is a deposit liability(8) denominated in dollars of a banking office located outside the United States,(9) whether or not in Europe.(10) Eurodollars are a subset of Eurocurrency deposits
, those liabilities of banks generally, denominated in any currency,(11) outside the jurisdiction of that currency.(12) Eurodollar deposits may be fully liquid, or of a longer duration, negotiable or non-negotiable.(13)
The issuance of these "Yankee CDs" resulted from the reduction in December of the reserve requirement on nonpersonal time deposits and net Eurocurrency deposits
from 3 percent to zero.
The growth of Eurocurrency deposits
has facilitated Eurodollar loans.