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Deposit-loan rate spread in Eurodollar -US banking market

Explain, how does deposit-loan rate spread within the Eurodollar market as compared to the deposit-loan rate spread in domestic U.S. banking system and why?

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Deposit-loan spread in Eurodollar market is narrower as compare to that in the domestic U.S. banking system.  It says that, in Eurodollar market deposit rate is higher than deposit rate of the dollars in U.S. banking system and also that the lending rate is low. Eurodollar market may operate at the lower cost than can the U.S. banking system since it is not related to the Federal Reserve Bank reserve requirements on the deposits or FDIC deposit insurance.

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