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Overnight interbank markets and the determination of the interbank rate: a selective survey

Green, Christopher J.; Bai, Ye; Murinde, Victor; Ngoka, Kethi; Maana, Isaya; Tiriongo, Samuel

Authors

Christopher J. Green

Ye Bai

Victor Murinde

Kethi Ngoka

Isaya Maana

Samuel Tiriongo



Abstract

Overnight interbank markets provide critical facilities for the banking system to manage, pool and redistribute its cash reserves. We provide a selective survey of the literature on overnight interbank markets. We outline the typical structure of overnight markets, including the networking relationships involved, as an indispensable prerequisite for a clear understanding of the workings of these markets. We review the theoretical and empirical studies on the determination of the overnight rate, and in that context discuss the implications of the 2007–08 financial crisis. We summarise key issues for further research.

Citation

Green, C. J., Bai, Y., Murinde, V., Ngoka, K., Maana, I., & Tiriongo, S. (2016). Overnight interbank markets and the determination of the interbank rate: a selective survey. International Review of Financial Analysis, 44, https://doi.org/10.1016/j.irfa.2016.01.014

Journal Article Type Article
Acceptance Date Jan 17, 2016
Online Publication Date Feb 6, 2016
Publication Date Mar 31, 2016
Deposit Date Nov 16, 2016
Publicly Available Date Nov 16, 2016
Journal International Review of Financial Analysis
Print ISSN 1057-5219
Electronic ISSN 1057-5219
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 44
DOI https://doi.org/10.1016/j.irfa.2016.01.014
Keywords Interbank market, Overnight rate, Bank reserves, Bank liquidity
Public URL http://eprints.nottingham.ac.uk/id/eprint/38460
Publisher URL http://www.sciencedirect.com/science/article/pii/S1057521916000156
Copyright Statement Copyright information regarding this work can be found at the following address: http://creativecommons.org/licenses/by-nc-nd/4.0

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Copyright Statement
Copyright information regarding this work can be found at the following address: http://creativecommons.org/licenses/by-nc-nd/4.0





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