The difference between the offshore Eurocurrency deposit rate and domestic onshore deposit rate for the same currency is frequently positive.
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.
In their study of eurocurrency deposit rates, Barkoulas and Baum [1997a, p.
Fractional Differencing Modeling and Forecasting of Eurocurrency Deposit Rates, "Journal of Financial Research, 20, 3, Fall 1997a, pp.
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
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.
10) Eurodollars are a subset of Eurocurrency deposits
, those liabilities of banks generally, denominated in any currency,(11) outside the jurisdiction of that currency.
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.