Interbank Call Money Market


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.

BREAKING DOWN '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.

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  2. Reserve Requirements

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  3. Money Market

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  4. Interbank Market

    The financial system and trading of currencies among banks and ...
  5. Interbank Rate

    The rate of interest charged on short-term loans made between ...
  6. Benchmark

    A standard against which the performance of a security, mutual ...
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