Interbank Call Money Market

AAA

DEFINITION of 'Interbank Call Money Market'

A short-term money market, which allows for large financial institutions, such as banks, mutual funds and corporations to borrow and lend money at interbank rates. The loans in the call money market are very short, usually lasting no longer than a week and are often used to help banks meet reserve requirements.

INVESTOPEDIA EXPLAINS 'Interbank Call Money Market'

While known as an interbank market, many of the players are not banks. Mutual funds, large corporations and insurance companies are able to participate in this market. Many countries, such as India, are beginning to push for a purification of the call money market, but adding regulations that allow only banks to participate.

RELATED TERMS
  1. Overnight Rate

    The interest rate at which a depository institution lends immediately ...
  2. Money Market

    A segment of the financial market in which financial instruments ...
  3. Reserve Requirements

    Requirements regarding the amount of funds that banks must hold ...
  4. Interbank Rate

    The rate of interest charged on short-term loans made between ...
  5. Interbank Market

    The financial system and trading of currencies among banks and ...
  6. Bear Fund

    A mutual fund designed to provide higher returns when the market ...
Related Articles
  1. The Foreign Exchange Interbank Market ...
    Forex Education

    The Foreign Exchange Interbank Market ...

  2. Getting To Know The Money Market
    Options & Futures

    Getting To Know The Money Market

  3. Do Money-Market Funds Pay?
    Options & Futures

    Do Money-Market Funds Pay?

  4. The Money Market: A Look Back
    Bonds & Fixed Income

    The Money Market: A Look Back

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center