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Interbank Lending Rates

Interbank lending rates are the interest rates at which banks lend to each other, typically on an overnight basis. Interbank lending rates are used as a benchmark for other interest rates in the economy, and are influenced by a range of factors, including the supply and demand for credit, the level of reserves held by banks, and the monetary policy of central banks. Continue Reading Below

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Encyclopedia Articles

Discover the definition of financial terms related to interbank lending rates.

Understanding Term Federal Funds: Definition, Usage, and Risks Thumbnail

Understanding Term Federal Funds: Definition, Usage, and Risks

Abi Bus

London Interbank Bid Rate (LIBID) Explained: Definition, Function, and Transition to Alternative Benchmarks Thumbnail

London Interbank Bid Rate (LIBID) Explained: Definition, Function, and Transition to Alternative Benchmarks

Alessandra Nicole

Euro Overnight Index Average (EONIA): Understanding the Benchmark, Transition to ESTER, and Implications Thumbnail

Euro Overnight Index Average (EONIA): Understanding the Benchmark, Transition to ESTER, and Implications

Alessandra Nicole

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About Interbank Lending Rates

Interbank lending rates are the interest rates at which banks lend to each other, typically on an overnight basis. Interbank lending rates are used as a benchmark for other interest rates in the economy, and are influenced by a range of factors, including the supply and demand for credit, the level of reserves held by banks, and the monetary policy of central banks.