call loan

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Related to call loan: Call loan rate

Call loan

A loan repayable on demand. Sometimes used as a synonym for broker loan or broker overnight loan.

Demand Loan

A loan that must be paid on demand from the lender. Demand loans are often used to fund margin accounts; alternatively, they are common for personal loans with no set maturity. Demand loans often require collateral and are also called call loans. See also: Margin call.

call loan

A loan that may be terminated at any time by either party. For investors, a call loan means bank loans to stockbrokers for the purpose of carrying customer margin borrowing, using securities as collateral. The rate of interest, similar to that on other high-quality short-term loans, varies over time. Brokerage firms usually charge customers the rate on call loans plus an additional 1% or so depending on the amount borrowed. Also called broker call loan. See also broker's loan.
References in periodicals archive ?
At the time of the transactions, interbank call loans were not considered for taxation purposes, the high court said, citing the 1977 Tax Code.
Table 3 illustrates one link between call loan rates and aggregate NYC bank clearinghouse deposits and reserves.
An average rate on uncollateralized overnight call loans due on Thursday stood at 0.
New York Clearinghouse banks were able to maintain liquidity on the call loan market in the prior panics, despite disruptions to intermediation, because they monopolized the funding of that market.
To put the possible increase in the seasonal pattern of interest rates during the Depression in perspective, figure 6 plots the estimated coefficients on the monthly dummy variables for the call loan renewal rate between 1919 and 1928 and between 1929 and 1933.
Given the tone and content of the debate, an asset-backed currency from some form of decentralized banking structure with reserve holdings insulated from the call loan market now seemed possible.
Leaving its monetary policy unchanged, the policy board has voted to keep the bank's unsecured overnight call loan rate at a range of 0.
At the end of a two-day policy meeting, Bank of Japan's (BOJ) Governor Masaaki Shirakawa and his six board colleagues also voted unanimously to maintain the unsecured overnight call loan rate at a range of zero percent to 0.
First Financial Holding has US$12 million of risk exposure to the PIIGS, including US$10 million of interbank call loan in Italy.
The policy board of Japan's central bank has also voted unanimously to leave the unsecured overnight call loan rate at 0.
The weighted average of unsecured overnight call loan rates dropped to zero for the first time in the Tokyo market Monday, money traders said.