The interest rate that one financial institutions charges another one for funds sent and made available overnight. Current conditions in the credit market drastically affect the rate that banks charge each other. During the height of the credit crisis in 2008, banks initially stopped lending to one another for a brief period of time.
Related information about overnight rate:
- Overnight rate - Wikipedia, the free encyclopedia
The overnight rate is generally the rate that large banks use to borrow and lend from one another on the overnight market. In some countries (United States Of ...
- Overnight Rate Definition | Investopedia
The interest rate at which a depository institution lends immediately available funds (balances within the central bank) to another depository institution overnight.
- Federal Funds Rate Data - Federal Reserve Bank of New York
By trading government securities, the New York Fed affects the federal funds rate, which is the interest rate at which depository institutions lend balances to each ...
- Overnight rate
Overnight rate. The rate at which money is lent, to be returned the next day, by one bank to another is called an overnight rate. Banks frequently find that they ...
- Key interest rate: target for the overnight rate - Bank of Canada
The overnight rate is the interest rate at which major financial institutions borrow and lend one-day (or "overnight") funds among themselves; the Bank sets a ...
- Target for the Overnight Rate - Bank of Canada
The Target for the Overnight Rate is the main tool ... Overnight Rate, this change affects other interest ... charged on those loans is called the overnight rate.
- Overnight Rate Definition & Example | InvestingAnswers
We explain the definition of Overnight Rate, provide a clear example of how it works and explain why it's an important concept in business, finance & investing.
- Bank of Canada Overnight Lending Rate Analysis - CABROVER ...
The Bank of Canada Overnight rate is the average rate that the Bank wants to see in ... When the Bank changes the Overnight Rate Target, this change usually ...