Interbank Loan

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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 ?
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".
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.
share of overdue loans in the total loan portfolio of commercial banks (exclusive of inter-bank loans and deposits) reaches 6.
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.
The Treasury has already committed pounds 250billion to guarantee inter-bank loans following the Northern Rock crisis.

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