The growth of the Eurodollar market is the result of the narrower spreads offered by Eurobanks. We have seen the size of the Eurodollar market grow as the total demand for dollar-denominated credit has increased and as dollar banking has moved from the United States to the external market. The shift of dollar intermediation has occurred as the Eurodollar spread has narrowed relative to the domestic spread or as individual responsiveness to the spread differential has changed.