They were introduced in the 1930s, because the stockmarket had been a favoured home for banks' overnight money.
These shunned banks have to resort to paying 1.75% to the European Central Bank for this emergency overnight money.
And there's no way it can be absorbed by either life insurance companies or banks - no matter how cheap the Bank of Japan makes overnight money.
The doubts burst into the open on August 9th when central banks were forced to inject liquidity into the overnight money markets because banks were charging punitive rates to lend to each other.
Meanwhile, with the bailout assured, investors are expecting a bit of turbo power behind it with an interest-rate cut from the Federal Reserve, which currently is targeting a 2.0% annual interest rate on overnight money.
When the Fed started raising rates in June 2004, the overnight cost of money was just 1%.
The cost of borrowing money overnight peaked at 26.5% in 2003 and is now down to 12%.
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The idea is that with the ECB offering an unattractive rate at which it borrows money overnight, banks will be more inclined to lend to one another, bringing Libor rates down even further.
You just had to be smart enough to make the right choices so that your money quadrupled overnight, then you quit.
Just ask anyone who has lived through a war and watched the value of paper money evaporate overnight as the cost of bread kept rising.
That's because the firm moves customer money into overnight securities accounts.
The most the ECB has done to try and encourage more lending is cut its overnight deposit rate, in other words paying less interest on money it borrows from banks overnight.
Back then, excess reserves were considered uneconomical, since banks could make more profits off lending the money to fellow banks overnight or to clients.
Such liabilities might be bonds it has issued, money borrowed on the overnight markets, even that 3p left in my bank account each month after the mortgage has gone out.
Reason: The Federal Reserve's easy money means that funds for overnight lending aren't worth anything.
Plus, they were lending the money short (often only overnight) and the banks taking in those deposits were transforming them into longer term loans to their customers.
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The Fed funds rate is money loaned from one bank to another overnight.
Last month the Fed cut the federal funds rate (applied to money that banks lend to each other overnight to meet reserve requirements) by 1.25 percentage points, to 3%, in just eight days--the biggest one-month reduction in 25 years.
Commercial paper is a way of borrowing money for short periods, typically ranging from overnight, to less than a week, and such contracts have become all but untouchable since the credit markets seized up.
For example, the ECB has a deposit facility that pays interest to banks, an emergency marginal lending facility for overnight borrowing and a weekly refinancing operation in which it lends money to banks.
In February Archant switched printing of its Norwich Evening News to an overnight slot, citing changing customer demands and the need to save money.
Presidents without a majority in the House of Representatives can build one overnight, provided they are willing to pay for it with hefty dollops of public money.
AIDS, transforming it overnight from a small group with a good idea to a powerful one with a lot of money to spend.
It took place in mid-February, involved an overnight transition from old currency to new, and required the help of the army to shift money quickly and safely.
In the current money market conditions, where banks have to approach the central bank for borrowing, the overnight lending rate is in fact the key operational policy rate.
The overnight rate now stands at 2.0%, down from 5.25% when the easy-money spree began.
Overnight deposits at the European Central Bank reached an all-time high, suggesting banks remain more willing to park money at the ECB than to lend to other banks.
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