Interbank Loan

(redirected from Inter-Bank Loan)
Also found in: Dictionary, Thesaurus.

Interbank Loan

A loan that one bank makes to another. Interbank loans may be made to ensure that banks meet their capital requirements at the end of each day. Interbank loans involving a central bank may be a way to control the money supply. Interbank loans must be repaid with interest in a stated period of time, often within a day. In such cases, interbank loans are called overnight loans.
References in periodicals archive ?
Joes Luis Zapatero, Spain's prime minister, said that the government would cover up to 100bn euros in inter-bank loans, but stopped short of announcing a recapitalisation scheme.
By implementing preventive measures such as the guarantee of deposits, savings and inter-bank loans, the federal government has sent a clear message to investors emphasising the stability of the UAE's fin-ancial system, and alleviating any ill-founded concerns about the financial health of UAE banks.
New rules on the inter-bank market for krona go into effect, extending the maturity of inter-bank loans to 9 and 12 months.
The scheme was designed so the deposits came from the assurance company and would be treated as customer deposits, which are considered a better measure of a bank's strength than inter-bank loans. The [euro]7.2billion deposit was later accounted for in Anglo's preliminary results on December 3, 2008 as part of its customer deposits figure.
share of overdue loans in the total loan portfolio of commercial banks (exclusive of inter-bank loans and deposits) reaches 6.2% (versus
The plan is comprised of a maximum of EUR320bn euros for the country's inter-bank loans, and EUR40 billion euros at most for capitalisation of French banks.
"That will not banish inter-bank loans," insisted McCreevy, "but we will ensure that now no institution will put all its eggs in one basket".
Called as Negotiable Certificates of Deposit (NCDs), the securities, will enable banks to convert surplus deposits that they would otherwise deposit at the NBC for a tiny interest rate into securities that they can immediately sell or utilize as collateral for inter-bank loans.

Full browser ?