Overnight Lending
/ˈoʊvərˌnaɪt ˈlɛndɪŋ/
Definitions
- (n.) A short-term loan between financial institutions, typically secured, that is extended and repaid within one business day, primarily to manage liquidity.
The bank engaged in overnight lending to meet its reserve requirements.
Forms
- overnight lending
Related terms
See also
Commentary
Overnight lending is crucial in banking regulation and liquidity management; clarity on whether transactions are secured or unsecured is important in drafting.
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.