Money Market : A meeting point between sellers and buyers of liquidity on the short term. This market was, as of its creation, devoted to banks and business concerns. As of 2005, it has become open also to private individuals. Liquidity exchange between banks is carried out in the framework of the credit lines that they can give mutually to each other through firm purchase or allowance uptake of public or private deeds or any other instrument agreed upon between parties. Borrowings of the lending institutions with respect to public or private business concerns or even private individuals are carried out through registered negotiable loan deeds by transfer from one account to another, called certificates of deposits. Furthermore, liquidity exchange between companies or with private individuals which can only be carried out through bank intermediaries are effected through registered negotiable loan deeds by transfer from one account to another, called commercial papers. The Central Bank will then intervene to fine tune liquidity either through injections or tappings.
Posted on: Mon, 19 Jan 2015 08:29:34 +0000
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