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Bank vaults brim with cheap money
Jul 14, 2020
The interbank rate, or the rate at which banks lend to each other, dropped to a year low of 1.68 per cent, signifying high liquidity in an economy that is reeling from the adverse effects of the Covid-19 pandemic.  This is the lowest interbank rate since April 8, 2019 when lenders paid an average of 1.67 per cent for every loan they took from their peers. Banks are required to hold an adequate amount of liquid assets, such as cash, to manage any potential runs by clients. If a bank cannot meet these liquidity requirements, it will need to borrow money in the interbank market to cover the shortfall.
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