The interbank borrowing market is a market formed by short -term funding activities between various financial institutions.The interbank borrowing market is the main component of the currency market , which is valued by financial institutions and currency authorities .What are the role of LTG GOLDROCK to share with you the role of the same industry?
It can be divided into the following two aspects to understand the role of interbank borrowing:
Looking at the role of the interim borrowing the market from a development point of view.
① The interbank borrowing market originally refers to the balance of reserve balances between banks such as banks and other financial institutions on central bank deposits .Because the outflows and inflows of commercial bank funds are carried out every moment, the uncertain factors that affect the difference between the outflow and flow of inflows are very different, which makes it impossible for commercial banks to keep the balance on the central bank's reserve deposit account.Equal to legal reserve balance.The deposit preparation balance needs to be paid for interest, and when it comes with favorable investment opportunities , and the bank cannot raise the required funds, the bank can only give up investment opportunities, sell assets, and recover the loan.Preparation also means that banks have funds idle , leading to interest income loss; in order to solve this difficulty, the division and the shortcomings are not enough to conduct reserve transactions.Therefore, the role of the interbank borrowing market is to meet the needs of a shortage of regulators that often occur in daily business activities between financial institutions.
② With the development of the market and the expansion of the market capacity , securities dealers and the government have also joined the industry to borrow the market.Including deposits between commercial banks and the current deposit of securities dealers and the government .In addition to commercial banks to meet the reserve requirements put forward by the central bank, the purpose of the borrowing also includes the goal of market participants' flat bill exchange exchanges, solving temporary, seasonality capital demand and other purposes.
(2) Understand the role of the interim borrowing the market from two perspectives from two perspectives.
① The direct role of the interbank borrowing market is to help financial institutions to achieve a three -sex business goal .Holding a higher percentage of cash, interbank deposits , excess reserves of the Central Bank deposit and short -term high -quality securities assets, although it can improve the level of liquidity, to maximize the customer's withdrawal and payment of the customer's withdrawal and paymentIt is required, but at the same time, it will also lose the chance of value -added funds, leading to a decrease in total profit .To maintain sufficient liquidity to meet the demand for payment, to obtain the maximum profit, in addition to strengthening asset -liability management and the best asset period and type of types of types, there is also a short -term for short -term borrowing markets, including the interim borrowing market.Fund Finance market.Once the temporary liquidity needs that have not been expected in advance, financial institutions can easily obtain liquidity through borrowing of short -term funds from other financial institutions without having to sell those high profitability assets.In this way, it not only avoids the crisis that may be caused by insufficient liquidity, but also does not reduce the expected asset income .
② The indirect effect of the interim borrowing the market is that the interbank borrowing market interest rate is usually used as the benchmark interest rate , which is of special significance for the entire economic activity and macro -control.Participants in the industry are mainly financial institutions. The market characteristics are the most active and the transaction volume is the largest.These characteristics determine the meaning of the interest rate .The interbank borrowing is interesting at daily, and the interest rate of interest is different every day every day. Its high and low and sensitive reflect the supply and demand status of the currency market funds.In the entire interest rate system , the benchmark interest rate is an interest rate that determines the role under the condition of a variety of interest rates.When it changes, other interest rates also change accordingly.Understand the changes in this key interest rate level , and you also understand the changes of all interest rate systems.General interest rates usually depend on the benchmark interest rate.For example, the Bank of London's interbank interest rate , that is, Libor (London Interbank Offered) interest rate refers to the short -term fund borrowing rate between the London banking industry, which has been used as a major in the international financial market.Most floating interest rates basic interest rate .This is the most representative interest rate libor, which has become the key interest rate of London's financial market and even the international financial market . Many floating interest rate financing tool Both this interest rate is used as the basis and reference of floating.For another example, the Federal Fund Market in New York, USA is the internationally renowned interbank borrowing market.a> intermediate target of monetary policy .
