Interbank Funding and Lending Rates

Interbank funding pages cover the market structure and rate language used when banks borrow, lend, or quote short-term funds to each other.

These terms support analysis of bank liquidity, central-bank transmission, and short-term-rate benchmarks.

In this section

• 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.