Dictionary of Banking Terms: foreign deposits
foreign deposits
deposits at branch offices of domestic banks outside the United States or its overseas territories. Such deposits are not subject to deposit insurance premiums or reserve requirements, and are not included in computing the net demand deposits of domestic banks. This freedom from bank regulation was one reason the International Banking Facility was authorized by state governments -mostly in New York and California-to create a domestic environment competitive with the relatively unrestricted Bahama and Cayman Islands Offshore Banking Centers.
