The call loan
market was central to the NYSE's settlement process, which required trade settlement on the following trade day.
The interest rate on an unsecured call loan
from Friday through Monday soared to 1 percent on the Tokyo interbank money market Wednesday, against the Bank of Japan's target of 0.
These credit facilities, consisting of call loans
, letters of credit and daylight overdraft facilities, are collateralized by either unpaid securities and/or securities owned by Canaccord.
Consistent with the Real Bills Doctrine, Federal Reserve Banks were not authorized to rediscount loans used to support purely financial activity, such as stock market call loans
, because they were believed to be inflationary or speculative.
The falling trend of the balance of call loans
was fueled by a BOJ decision in March 2001 to implement a quantitative monetary easing policy.
The overnight call money rate is charged among commercial banks on overnight call loans
The CBC pointed out that of the outstanding foreign-currency call loans
, offshore loans accounted for 99.
Last August, the BOJ ended an 18-month policy of guiding the rate on unsecured overnight call loans
A large part of its banking assets are invested in call loans
, most of which are secured.
The survey of 28 financial market participants and economists found 27 of them expect the BOJ to return to the policy of guiding the rate on unsecured overnight call loans
The fund strives to achieve this objective by investing in an array of high quality short-term instruments, such as Japanese government bonds, corporate bonds, commercial paper, call loans
, certificates of deposit, and repo transactions.
Presently, loans extended by the Chinese branches of Taiwanese banks are capped at two times the combination of local deposits and the amount of call loans