JOURNAL ARTICLE
Cite JOURNAL ARTICLE
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Format
Die Zinsbildung am Geldmarkt
Credit and Capital Markets – Kredit und Kapital, Vol. 13 (1980), Iss. 3 : pp. 339–348
1 Citations (CrossRef)
Additional Information
Article Details
Bockelmann, Horst
Cited By
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Bankbetriebslehre
Rahmenbedingungen bankgeschäftlichen Handelns für deutsche Banken
Büschgen, Hans E.
1991
https://doi.org/10.1007/978-3-663-15730-4_3 [Citations: 0]
Abstract
The conditions on the day-to-day money market are decisive for interestrate determination on the money market. The day-to-day money market is a market on which, as a general rule, only the central bank can bring about market equilibrium and hence necessarily dominates interest-rate determination on this market. Supply and demand on the day-to-day money market towards the end of the month lack flexibility in a manner for which it is difficult to find parallels on other markets. This is closely connected with the minimum reserve requirements, although in a quite general way, and not, as is often assumed, with the reserve-holding lag. Even with simultaneous reserve-holding, if it were technically possible, the individual bank would have no incentive to reduce liabilities subject to reserve requirements, for considered on its own this would not improve, but deteriorate the bank’s reserve position.