interbank loan

Thân thiện

One bank provides an interbank loan to another bank.

Definition

Noun: - A loan from one bank to another: An "interbank loan" is a financial transaction where one bank lends money directly to another bank. These are typically short-term loans used by banks to manage their daily liquidity needs and maintain required reserve balances.

Usage

• This term is used specifically in banking and finance contexts.
• It describes the lender-borrower relationship between two banking institutions, not involving other types of companies or individuals.
• Often refers to unsecured loans made for very short periods, such as overnight.

Examples

• Noun:
  • The central bank's actions influenced the rates for interbank loans.
  • To cover a temporary shortfall, the bank secured an interbank loan.
  • Trust is a crucial component in the interbank loan market.

Advanced Usage

• "Interbank lending market": The financial network or system through which these loans are facilitated.
  • The stability of the interbank lending market is vital for the overall financial system.
• "Interbank loan rate": The interest rate charged on such loans, a key benchmark (e.g., LIBOR, formerly, or SOFR).
  • The interbank loan rate rose sharply during the credit crisis.

Variants and Related Words

• Interbank lending (n): The general activity or practice of banks lending to one another.
  • Interbank lending froze during the financial panic.
• Interbank market (n): The broader market where banks lend and borrow funds among themselves.
  • He works in the foreign exchange and interbank market.

Synonyms

• Interbank credit: A broader term that can include loans and other lines of credit extended between banks.
• Bank-to-bank loan: A more descriptive synonym with the same meaning.

Related Phrases

• Overnight loan: A very common type of interbank loan that is repaid the next business day.
  • The bank took out an overnight loan to meet its reserve requirement.

Học thuật

Noun

1. a loan from one bank to another