Interbank Market

Interbank Market

Intuition Publishing Pty Ltd
Updated Sep 23, 2020

The interbank market is an over-the-counter market on which banks lend funds to one another for very short maturities. Banks also conduct currency transactions in the interbank FX market. Here we look at the importance of the interbank lending market for the banking system and the key reference rates used in the market. We also briefly examine the interbank FX market.