Overnight loan transactions are short-term loans that banks provide to each other to maintain their reserve requirements. These transactions typically occur in the federal funds market, where institutions lend excess reserves on an overnight basis. The purpose is to ensure... Read More
Overnight loan transactions are short-term loans that banks provide to each other to maintain their reserve requirements. These transactions typically occur in the federal funds market, where institutions lend excess reserves on an overnight basis. The purpose is to ensure liquidity and compliance with regulatory reserve requirements.
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