DEFINITION of 'Eurobank'
A financial institution that accepts foreign currency denominated deposits and makes foreign currency loans. As such, a eurobank does not necessarily have to be located on the continent of Europe; it can be anywhere in the world. The emergence of eurobanks has facilitated trade and investment between countries, which was difficult in the past for lack of intermediaries that would accept foreign currencies.
BREAKING DOWN 'Eurobank'
The explosion in international trade since the 1980s has been largely facilitated by the emergence of eurobanks. The emergence of dynamic economies such as China, India and Brazil has contributed to exponential growth in eurobanks. This is because despite the size of these economies and their contribution to growth in international trade, the currencies of some of these nations are still not freely traded on global currency markets, making it necessary to conduct business in foreign currencies.