The Evolving Law on the Eurobank—Customer Relationship and the Common Law.


The traditional common law rules respecting the banker-customer relationship are based on the notion that money on deposit is physical cash that has a location. Since eurocurrency deposits are book entries and not deposits of cash, this approach gives rise to problems when it is applied to the relationship between a eurobank and its customer. Thus far, decisions involving eurocurrency market deposits have been far from certain as to whether the traditional common law or a modified approach applies to the relatoinship between the eurobank and its customer. There is the need for Courts to introduce clarity and certainty into the law respecting the eurobank and its customer.


Banking and Finance Law | International Law

Date of this Version

March 2004