Sterling certificates of deposit were first issued in October 1968. Following the successful development of a market in dollar certificates of deposit, which were introduced into the United States on a large scale early in 1961, and into the United Kingdom in May 1966, a number of banks suggested that a similar market might be made in sterling certificates of deposit and that this would be a useful addition to the range of services provided by the U.K. banking system.
This article first gives a brief description of the certificate and of the primary and secondary markets, and then looks at developments in these markets in the four years since sterling certificates were first issued.
Sterling certificates of deposit