EC249 Lecture Notes - Lecture 13: Brady Bonds, Petrodollar Recycling, Commercial Bank
Document Summary
The following is not a service provided by an international bank: arrange trade financing, arrange currency exchange, offer hedging, none of the above. A bank may offer international banking services: all of the above. Attributes of offshore financial centres are: little compliance requirements. Bank capital adequacy refers: the amount of equity capital and other securities a bank holds as reserves. Eurocurrency: is a time deposit in an international bank located in a country different than the country that issued the currency. Time deposit locked in, demand deposit can be withdrawn at any time. There is more than one libor: yes, because there are different rates for various maturities. Euribor is: the rate at which interbank time deposits of euro are offered by one prime bank to another. Lending rates on eurocredits are: libor+x% Ex: usd deposits and lending in london. Less costs for the bank that lends out these funds, can.
