According to the definitions on the site of the Financial Times,
- Interbank Rate
- Is the interest rate that the banks offer to lend unsecured funds to other banks (usually in Eurodollars). In London this is known as the LIBOR and is officially fixed once a day by a small group of large London banks (the rate can change throughout the day).
- For Switzerland/Swiss banks this rate is -400%!! Does this have to do with the vow to keep the Swiss franc pegged to a certain value of the euro, and does this imply that the Swiss central bank provides loans to banks which Swiss banks then (vis-a-vis other banks, presumably non-Swiss) ‘give’ to other banks?? Is this the trick to keep the franc low enough? Passing on money that the Swiss Central Bank created?
- I would like comments here, I don’t understand this interbank rate!!