INTEREST RATES ON INTERBANK LOANS

Abstract

The primary objective of the present study
was to analyze the impact of the financial crisis
in the euro area money market. Well regulated
and efficient money market is crucial for
the maintenance of liquidity. The importance
of a interbank market can be seen in the crisis
period when, because of the unstable economic
conditions, there was a lack of fund.
In this paper, first, presents the movement
of daily reference rate for loans in the London
interbank market, its comparison with the
time indicated on the possible manipulation
of the money markets. Then consider an indicator
of stress in the interbank market, shown
by movements in interest rates that apply in
the euro zone. Special attention is paid to the
role and importance of the reference rate for
the Serbian dinar funds interbank market. In
the last section have been analyzed and the
movement of all the abovementioned interest
rates on interbank loans (LIBOR, EURIBOR,
BELIBOR and BEONIA) during the crisi, in
order to determine how the interbank lending
actually contributed to the development of the
interbank market.