interbank rate of interest
1Interbank Rate — The rate of interest charged on short term loans made between banks. Banks borrow and lend money in the interbank market in order to manage liquidity and meet the requirements placed on them. The interest rate charged depends on the availability… …
2interbank offered rate — ➔ rate1 * * * interbank offered rate UK US noun [C, usually singular] (ABBREVIATION IBOR, also interbank rate, overnight rate) BANKING, FINANCE ► the interest …
3Interest rate risk — is the risk (variability in value) borne by an interest bearing asset, such as a loan or a bond, due to variability of interest rates. In general, as rates rise, the price of a fixed rate bond will fall, and vice versa. Interest rate risk is… …
4rate — The cost of debt service paid by a borrower or issuer to a lender or investor. The rate is expressed as an annual percentage of the amount borrowed. For some notes and bonds that pay interest semiannually, the semiannual interest due to the… …
5Interbank lending market — The interbank lending market is where banks lend money to each other. For example, the interbank overnight lending market is where depository institutions by or sell funds so they may meet reserve requirements.… …
6Interest rate derivative — An interest rate derivative is a derivative where the underlying asset is the right to pay or receive a (usually notional) amount of money at a given interest rate.The interest rate derivatives market is the largest derivatives market in the… …
7interbank market — The wholesale market for short term money and foreign exchange in which banks, companies, and other organizations trade. The Inter Bank Offered Rate (IBOR) is the rate of interest charged on interbank loans in a particular financial centre. See:… …
8interbank market — The wholesale money market in which banks lend to and borrow from one another. The importance of the market is that it allows individual banks to adjust their liquidity positions quickly, covering shortages by borrowing from banks with surpluses …
9Interbank market — The interbank market is the top level foreign exchange market where over 1000 banks can exchange different currencies.7 Winning Strategies for Trading Forex, Grace Cehng] The banks can either deal with one another directly, or through electronic… …
10interest rate futures contract — A futures contract based on an interbank deposit rate or an underlying debt security. The value of the contract rises and falls inversely to changes in interest rates. Bloomberg Financial Dictionary …
