The
call loan market was central to the NYSE's settlement process, which required trade settlement on the following trade day.
An average rate on uncollateralized overnight
call loans due on Thursday stood at 0.527 percent.
At that time, New York City national banks and other New York Clearinghouse members still held nearly 40 percent of their loans outstanding in the form of
call loans. Hence, a substantial devaluation of
call loan assets would seriously weaken their balance sheets and threaten their solvency.
The bankers acceptance and
call loan rates, however, did not have statistically significant seasonal patterns.
In fact, the Bank of Montreal refused to make
call loans to Canada, believing that they were not sufficiently liquid in time of crisis.
Given the tone and content of the debate, an asset-backed currency from some form of decentralized banking structure with reserve holdings insulated from the
call loan market now seemed possible.
For example, the domestic interbank
call loan rate (IBCL) is up by 80 bps from a year ago.
They also decided to maintain the unsecured overnight
call loan rate at a range of zero percent to 0.1 percent to support the country's economy.
TIER's Forecast of Taiwan's Economic Performance for 2011 & 2012?Unit: % Item Growth for 2012 Growth for 2011 Gross Domestic product (GDP) 4.22 4.64 Private spending 2.94 3.48 Government spending 0.53 -0.33 Gross fixed capital formation 0.01 0.55 Export 4.52 12.76 Import 5.03 23.99 Consumer price index (CPI) 1.73 1.69 Wholesale price index (WPI) 1.85 4.0 Average exchange rate of NT$ : US$ 30.16 29.62 Average rate of interbank
call loan 0.56 0.38 Source: TIER TIER's Forecast of Manufacturing Monitoring Indicator for 2012 Q1 Yellow-blue light Q2 Green light Q3 Green light Q4 Yellow-blue light Full-year Green light Source: TIER Taiwan's Economic Growth Forecasts for 2011 & 2010 Unit: % Institute & date of forecast 2011 2012 Domestic TIER (Nov.
The Bank of Japan (BOJ) has decided to keep the bank's unsecured overnight
call loan rate target unchanged in a range of 0.0 to 0.1 percent on Thursday.
The Bank of Japan has decided to leave its overnight
call loan rate unchanged, reports Dow Jones.
"This has helped strengthen the monetary transmission mechanism in terms of the alignment between market interest rates and the BSP's policy rate, with interbank
call loan rates moving steadily within the corridor.
