Finance
Interbank Market
October 26, 2023
Banking
Short-Term Interbank Loan
October 27, 2023

A type of interbank loan that has a fixed term (maturity) during which the lender cannot require repayment of the loan’s face value. A term interbank loan has longer maturities compared to overnight deposits and repos that dominate the interbank markets.

These loans are used by banks, in these markets, co-insure long-term liquidity risks. Examples include term repos and term deposits.

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