Foreign Deposits

AAA

DEFINITION of 'Foreign Deposits'

A deposit made at, or money put in to, domestic banks outside of the United States. These deposits are not subject to deposit insurance premiums (a premium paid to ensure that funds can be retreived if the debtor cannot repay the deposit), or reserve requirements (the amount of funds an institution must hold relative to its deposits).

INVESTOPEDIA EXPLAINS 'Foreign Deposits'

The leniency awarded to foreign deposits regarding deposit insurance and reserve requirements is in effort to compete with the offshore banking centers.

RELATED TERMS
  1. Foreign Draft

    An alternative to foreign currency. A foreign draft is a bank ...
  2. Foreign Direct Investment - FDI

    An investment made by a company or entity based in one country, ...
  3. Federal Deposit Insurance Corporation ...

    The U.S. corporation insuring deposits in the U.S. against bank ...
  4. Foreign

    1. A non-U.S. company with securities trading on the North American ...
  5. Reserve Requirements

    Requirements regarding the amount of funds that banks must hold ...
  6. Deposit

    1. A transaction involving a transfer of funds to another party ...
Related Articles
  1. Are Your Bank Deposits Insured?
    Savings

    Are Your Bank Deposits Insured?

  2. Are My Investments Insured Against Loss?
    Home & Auto

    Are My Investments Insured Against Loss?

  3. Bank Failure: Will Your Assets Be Protected?
    Options & Futures

    Bank Failure: Will Your Assets Be Protected?

  4. CDIC Protects Canadians From Bank Failure ...
    Retirement

    CDIC Protects Canadians From Bank Failure ...

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center