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Yankee Certificate Of Deposit

What is 'Yankee Certificate Of Deposit'

A certificate of deposit issued by a foreign bank in the United States. As they usually have a minimum face value of $100,000, Yankee certificates of deposit are generally used by institutional and other large investors looking to invest funds in instruments with a relatively high degree of safety, although they are unsecured.

Explaining 'Yankee Certificate Of Deposit'

Yankee certificates of deposit can most often be found in New York financial markets. They are generally negotiable, which enables them to trade in a secondary market. Typically, they have a maturity of less than a year.


Further Reading


Slapped in the Face by the Invisible Hand: Banking and the Panic of 2007
papers.ssrn.com [PDF]
… Under Federal Reserve Regulation D, which governs reserve requirements, a foreign bank branch or agency had to post a non-interest-bearing 3 percent reserve when it sold a large so-called Yankee, or for eign bank, certificate of deposit in New York to fund a corporate …

Interest-Free Treasury Bonds (IFTB): Islamic Finance and Legal ClarificationsInterest-Free Treasury Bonds (IFTB): Islamic Finance and Legal Clarifications
www.cribfb.com [PDF]
… Under Federal Reserve Regulation D, which governs reserve requirements, a foreign bank branch or agency had to post a non-interest-bearing 3 percent reserve when it sold a large so-called Yankee, or for eign bank, certificate of deposit in New York to fund a corporate …