The distinguishing feature of the Eurocurrency market is that the currency used in the banking transaction generally differs from the domestic
currency of the country in which the bank is located. However, this is
not strictly the case, as some international banking activity in domestic
currency may exist. Where such international banking occurs, it is
segregated from other domestic currency banking activities in regard to
regulations applied to such transactions. As we learn in the next section,
offshore banking activities have grown rapidly because of a lack of regula-
tion, which allows greater efficiency in providing banking services.