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Banking

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  • October 27, 2023
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Short-Term Interbank Loan

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

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


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