Reference Rates and Interbank Markets

Reference-rate pages explain the rate bases used to price loans, deposits, floating-rate contracts, and funding-market instruments.

This branch keeps benchmark-index and interbank-market concepts together, separate from everyday banking-rate calculation pages.

In this section

• Interbank Funding and Lending Rates
  Interbank funding, lending-rate, and reference-bank terms used in money-market analysis.
  • Interbank Market: The Wholesale Market for Short-Term Money and Foreign Exchange
    An overview of the interbank market, its historical context, key events, mechanisms, importance, and applicability in the financial sector.
  • Interbank Rate
    Understand interbank rate as the rate banks charge one another for short-term funds and why it matters for liquidity conditions and rate transmission.
  • Minimum Lending Rate (MLR): Historical Benchmark in UK Banking
    The Minimum Lending Rate (MLR) was the minimum rate at which the Bank of England lent to UK discount houses between 1971 and 1981, serving as a key interest rate benchmark.
  • Overnight Rate: Key Interest Rate for Interbank Lending
    A comprehensive overview of the Overnight Rate, the interest rate at which major banks lend to one another on the overnight market, along with key indexes like SONIA and EONIA.
  • Reference Bank: Definition and Importance
    A comprehensive guide to understanding Reference Banks, their role in financial agreements, and their impact on variable-rate loans.
• Reference Indexes and Benchmark Publication
  Reference-index, benchmark-publication, and benchmark-curve terms used in rate-linked contracts.
  • 11th District Cost of Funds Index: Understanding Its Mechanism and Impact
    A comprehensive guide to the 11th District Cost of Funds Index (COFI), including its definition, calculation, historical context, applicability, and impact on financial markets in Arizona, California, and Nevada.
  • Alternative Reference Rates (ARR): Benchmark Rates Other Than LIBOR
    A comprehensive guide to Alternative Reference Rates (ARR), their history, types, significance, and comparison to LIBOR. Includes key events, mathematical models, examples, and FAQs.
  • Benchmark Rate: Definition, Application, and Significance
    An in-depth exploration of Benchmark Rate - a reference interest rate upon which floating rate notes (FRNs) and other financial instruments are based, serving as a standard measure for other interest rates.
  • LIBOR Curve: Definition, Mechanism, and Criticisms
    A comprehensive guide to understanding the LIBOR Curve, its function, and the criticisms it has faced.
  • Reference Index: A Benchmark Interest Rate
    The Reference Index is a benchmark interest rate, such as LIBOR or the Federal Funds Rate, used to set floating loan rates.
  • WM/Reuters Benchmark Rates: Definition and Applications in Portfolio Valuation
    An in-depth exploration of WM/Reuters Benchmark Rates, their definition, and applications in portfolio valuation and performance measurement.