interbank loan


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Noun1.interbank loan - a loan from one bank to another
bank loan - a loan made by a bank; to be repaid with interest on or before a fixed date
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Interbank loan and deposit data (5) are chosen from the annual reports of 16 major UK-owned banks which release consolidated balance sheets.
* The TED spread: Basically, the TED spread is the difference between the interest rate on an unsecured interbank loan (1-month KIBOR in this case) and interest rate on a secured loan (1-month PKRV in this case).6 Generally, the international trends suggest that money market includes loans with maturities up to one year.
Finally, we discuss in the conclusion the possibility that, beyond fed funds, the algorithm output captures more general overnight interbank loans. Although we provide some evidence to support this hypothesis, we ultimately conclude that the algorithm cannot systematically recognize that a given pair of payments corresponds to an overnight interbank loan between two specific banks.
The researchers used three independent channels of systemic risk - the interbank loan market, the sovereign credit risk market and the asset-backed loan market - to test which banks were resilient and to track how shocks spread between domestic and international banks.
According to data compiled by the newspaper, used as the source for the article, the big four UK banks cut interbank loan volumes by more than 24% to 10.5 billion pounds ($16.6 billion) in the three months to end-September, as Europe's debt crisis worsened.
In this paper, we examine one aspect of the financial crisis: the month-long turmoil in the interbank loan market.
The initial interbank loan market will be a daily market for overnight and 30-day loans.
For similar reasons, stress tests reduce the costs and increase the effectiveness of government programs that guarantee interbank loans. To illustrate, we note that interbank loan guarantees are very expensive because they transfer credit risk from the banking system to the government.
''A mechanism that supports such interbank loan transactions would better do the trick,'' he said.
Examples of other types of loans which were excluded by Monetary Board from the computation of the SBL are: (a) loans covered by legally effective credit risk transfer arrangements; (b) certain interbank loan transactions; (c) short-term exposures of banks to settlement banks; and (d) loans covered by guarantees of international/regional institutions/multilateral financial institutions.