All of the deposit figures cited above exclude interbank (and, where possible, government) deposits.
With those provisos in mind, we can highlight some features of the interbank market.
The board, however, rejected the government's request and voted by 7-2 to increase the interbank rate.
He showed that an appropriate choice of reserve requirements and a well-functioning interbank market can generate efficient outcomes.
That is, the link between interbank rates and reserves is asymmetric.
That is, the interbank rates do not create the incentives for individual banks to hold a correct amount of cash reserves.
The interbank coordination problem as discussed above implies that, for deposits to be made, contracts must be written to provide for monitoring under some contingencies.
To calculate the representative interest rate, we use the time-series of average of the lending rates of commercial banks, finance companies, and interbank loans between 1978 and 1996.
