which differs from the bank's local currency (USD) for specific reasons, most likely some sort of business operations or trade requirements. Despite the inclusion of the word "euro," a eurocredit is not immediately derived from the euro. Eurocredits are short-to-medium-term loans of Eurocurrency extended by Eurobanks to corporations, sovereign governments, nonprime banks, or international organizations. The loans are denominated in currencies other than the home currency of the Eurobank. Because these loans are frequently too large for a single bank to handle, Eurobanks will band together to form a bank lending syndicate to share the risk. The credit risk on these loans is greater than on loans to other banks in the interbank market. Thus, the interest rate on Eurocredits must compensate the bank, or banking syndicate, for the added credit risk. On Eurocredits originating in London the base lending rate is LIBOR. The lending rate on these credits is stated as LIBOR +X percent, where X is the lending margin charged depending upon the creditworthiness of the borrower. Additionally, rollover pricing was created on Eurocredits so that Eurobanks do not end up paying more on Eurocurrency time deposits than they earn from the loans. Thus, a Eurocredit may be viewed as a series of short-term loans, where at the end of each time period (generally three or six months), the loan is rolled over and the base lending rate is repriced to current LIBOR over the next time interval of the loan. See also World currency Reserve currency References Further reading AFR. (2018). https://www.afr.com/markets/currencies/euro-currency-remains-a-work-in-progress-on-20th-birthday-20181228-h19jk7. Australian Financial Review. Retrieved from https://www.afr.com/markets/currencies/euro-currency-remains-a-work-in-progress-on-20th-birthday-20181228-h19jk7 Booth, Jerome (n.d.). Bretton Woods Plan: The Next 70 Years. Retrieved from: https://eml.berkeley.edu/~eichengr/Bretton-Woods-next-70.pdf Bordo, M., & Eichengreen, B. Bretton Woods: The Next 70 Years (1st ed., pp. 51–62). Prudential. Butler, Kirt (2008) Multinational Finance (4th ed). South Western, Tompson. Carlozzi, N. Regulating the Eurocurrency Market: What are the Prospects? 15-23. Retrieved from https://philadelphiafed.org/-/media/research-and-data/publications/business-review/1981/br81manc.pdf?la=en Collins English Dictionary – Complete and Unabridged, 12th Edition 2014. (1991, 1994, 1998, 2000, 2003, 2006, 2007, 2009, 2011, 2014 Hogan, W., & Pearce, I. (1982). The Incredible Eurodollar (1st ed., pp. 1–12). London: Routledge. MacIntosh, C. (2016). The Eurodollar Market: It All Starts Here. Retrieved from https://capitalistexploits.at/eurodollar-market-it-all-starts-here/ McKinnon, R. (1977). THE EUROCURRENCY MARKET. ESSAYS IN INTERNATIONAL FINANCE, (125), 1-52. Retrieved from https://ies.princeton.edu/pdf/E125.pdf The Free Dictionary (n.d.) Eurocurrency Market. Retrieved from: https://financial-dictionary.thefreedictionary.com/Eurocurrency+market The Free Dictionary (n.d.) Eurodollar. Retrieved from: https://financial-dictionary.thefreedictionary.com/Eurodollar The Free Dictionary (n.d.) Euroeuro. Retrieved