Interbank
call loans refer to the cost of borrowings from other banks.
The
call loan market was central to the NYSE's settlement process, which required trade settlement on the following trade day.
Market sources attributed the high
call loan rate to credit squeeze fears as well as growing fund demand toward banks' book closings for the fiscal first half to the end of this month.
Now the banker could afford to make more loans, too, since he could go to the Federal Reserve for more funds, instead of trying to
call loans in, if he faced demands for an unusual amount of withdrawals from his bank.
Our chapter on the
call loan market in New York City plays a central role in illustrating the key reason, in our thesis, for why the movement for the establishment of a central bank in the United States took hold only after the panic of 1907.
The bankers acceptance and
call loan rates, however, did not have statistically significant seasonal patterns.
After the Panic, however, the New York bankers recognized a distinct and valuable role for a central bank that Chicago bankers, far from the New York Stock exchange and the
call loan market, did not appreciate.
This week, the unsecured overnight
call loan was traded mostly at 0.
They also decided to maintain the unsecured overnight
call loan rate at a range of zero percent to 0.
The Bank of Japan (BOJ) has decided to keep the bank's unsecured overnight
call loan rate target unchanged in a range of 0.
The Bank of Japan has decided to leave its overnight
call loan rate unchanged, reports Dow Jones.
