Austria will provide a guarantee for
interbank loans of up to 85 billion euro and inject 15 billion euro in bank recapitalisation.
These findings are associated with the concentration of
interbank loans over the period.
This method relies on the premise that all
interbank loans will eventually result in a converse payment between financial institutions in the large-value payment system.
We note, however, that even if the algorithm correctly identifies loans, it may not accurately identify
interbank loans. This would be the case in particular if loans are placed on behalf of bank clients that are outside the banking system or even the financial sector.
The interest rate on
interbank loans in foreign currency in December 2014 was 0.5%.
- Corporate loans added 2.2% QoQ (if we use our measure of the four banks' corporate loans and foreign
interbank loans)
Interbank loans outstanding in October 2011 were only one-quarter of their level in October 2008 (see figure).
"The growing signs of stress in the European financial system can be seen most clearly in the "TED spread" - the difference between the interest-rates on
interbank loans and short-term government bills, and a widely followed measure of the perceived risk attached to lending to banks.
HSBC, the biggest supplier of credit to other banks, also cut its exposures the most sharply with a 40% overall decline in
interbank loans to the region.
The CHF-specific spike in the cost of obtaining unsecured funds was caused by a combination of the need by banks outside Switzerland to continuously roll over maturing
interbank loans and the shrinking supply for these funds.
Before that time, banks sought to minimize their holdings of excess reserves by making
interbank loans in the federal funds market.
To date such branches can only transact RMB-based businesses as remittance, deposits/lending, cash exchange, and
interbank loans, but will be allowed to, under the new rule, handle securities underwriting, derivative financial products, asset management, investment etc.
