Interbank Lending
/ˌɪntərˌbæŋk ˈlɛndɪŋ/
Definitions
- (n.) The practice whereby banks lend funds to one another, typically overnight, to manage liquidity and meet reserve requirements.
The central bank monitors interbank lending rates to assess financial stability.
Forms
- interbank lending
Related terms
See also
Commentary
Interbank lending is key in regulating short-term liquidity among banks and is often influenced by central bank policy rates.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.