Overnight interbank markets and the determination of the interbank rate: A selective survey

Christopher Green, Ye Bai, Victor Murinde, Kethi Ngoka, Isaya Maana and Samuel Tiriongo

International Review of Financial Analysis, 2016, vol. 44, issue C, 149-161

Abstract: Overnight interbank markets provide critical facilities for the banking system to manage, pool and redistribute its cash reserves. We provide a selective survey of the literature on overnight interbank markets. We outline the typical structure of overnight markets, including the networking relationships involved, as an indispensable prerequisite for a clear understanding of the workings of these markets. We review the theoretical and empirical studies on the determination of the overnight rate, and in that context discuss the implications of the 2007–08 financial crisis. We summarise key issues for further research.

Keywords: Interbank market; Overnight rate; Bank reserves; Bank liquidity (search for similar items in EconPapers)
JEL-codes: E43 E52 G21 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:44:y:2016:i:c:p:149-161

DOI: 10.1016/j.irfa.2016.01.014

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