1. The Eurocurrency market is the offshore banking market where
commercial banks accept deposits and extend loans in a currency
other than the domestic currency.
2. The Eurodollar, the U.S. dollar-denominated deposits and loans out-
side the U.S., has the highest value of activity among other currency
offshore banking.
3. Comparing to domestic banks, the Eurobanks have lower operating
costs and are less regulated. Therefore, they are able to offer narrower
spread than domestic banks.