At the time of the transactions, interbank call loans
were not considered for taxation purposes, the high court said, citing the 1977 Tax Code.
The call loan
market was central to the NYSE's settlement process, which required trade settlement on the following trade day.
given to HSBC Seoul Branch stood at KRW370.
Market sources attributed the high call loan
rate to credit squeeze fears as well as growing fund demand toward banks' book closings for the fiscal first half to the end of this month.
These actions were intended to forestall any large-scale liquidation of call loans
(and potentially, of the stock collateral supporting the loans).
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.
After the Panic, however, the New York bankers recognized a distinct and valuable role for a central bank that Chicago bankers, far from the New York Stock exchange and the call loan
market, did not appreciate.
The brokers also noted major commercial banks -- long-time call loan
takers -- have had less need for call loans
due to the mammoth inflows of ordinary deposits into large banks in recent months.
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.
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
Last August, the BOJ ended an 18-month policy of guiding the rate on unsecured overnight call loans