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 KRW370.8bn, 47.9% of total assets at end-September 2009.
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.
The next logical source of cash for trusts facing panic-induced withdrawals was the liquidation of their call 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.(9) The Federal Reserve Banks set discount rates, subject to approval by the Federal Reserve Board, and generally supplied currency and reserves elastically through the discount window.
The return on - New York call loans
was significantly less than on the same loans made in Canada, and it was also more volatile.
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 equivalence of domestic banks' total risk exposure in the mainland Chinese market to 100% of their book values doubles the 50% ceiling proposed by the Financial Supervisory Commission (FSC).The risk exposure includes investment, credit extension, and call loans
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
. Hayami reiterated the BOJ has no plans to underwrite newly issued government bonds, pointing out that doing so could trigger inflation and eventually lead to a rise in long-term interest rates.
In addition to OBUs, cases of U.S.-dollar syndicated loans and U.S.-dollar call loans
in the domestic financial market also increased significantly this year.