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.