India Money Market Rates-May 10

 


The measure of responsiveness of the demand for a good towards the change in the price of a related good is called cross price elasticity of demand. A comparison of Mibor movements with interest rates in the call money market suggests that they mostly move in tandem. Lettris is a curious tetris-clone game where all the bricks have the same square shape but different content. MIBOR is the interest rate at which banks can borrow funds, in marketable size, from other banks in the Indian interbank market.

FBIL Overnight MIBOR


Thus, for banks and other financial institutions, huge number of transactions are valued based on the current trend of LIBOR. We have seen above that LIBOR is the average rate declared on daily basis and is calculated based on the rates submitted by major international banks in London. On 16th April, , The Wall Stree Journal published an article which suggested that some banks seems to have understated their borrowing costs they reported for the LIBOR during credit crunch and this might have misled others about the financial position of these banks.

However, at that time, it was contradicted by banks and thus a lid was placed on this issue. Later on a study by Srider and Youle in April , once again came to light which corroborated the results of the earlier Wall Street Journal Study. However, there was one difference that this study gave different reasons for this manipulation by banks.

These two economists suggested that the reason for understatement by member banks was not that the banks were trying to appear strong, especially during the financial crisis of and , but rather they did it to make substantial profits on their large LIBOR inter linked portfolios.

Based on these, criminal investigations were started since and details started tumbling in It came to light that traders were in direct communication with bankers before the rates were set, thus allowing them an unprecedented amount of insider knowledge into global instruments. Have you read these stories? Jan 25, , Sub-Rs 10, smartphones may not be so popular anymore, says study. National Entrepreneurship Awards Vodafone Business Services Digilogue - Your guide to digitally transforming your business.

TomorrowMakers Let's get smarter about money. CSR Compendium Touching lives of many. ET EnergyWorld A one stop platform that caters to the pulse of the pulsating energy. NSE launches futures on overnight call rate Mibor Mumbai Inter-Bank Offer Rate is the interest rate at which banks borrow from another for short term purposes.

Apart from Cash Reserve Ratio CRR , banks have to maintain a stipulated proportion of their net demand and time liabilities in the form of liquid assets like cash, gold and unencumbered securities. Treasury bills, dated securities issued under market borrowing programme. This is a technique aimed at analyzing economic data with the purpose of removing fluctuations that take place as a result of seasonal factors. In the world of finance, comparison of economic data is of immense importance in order to ascertain the growth and performance of a compan.

Domestic institutional investors are those institutional investors which undertake investment in securities and other financial assets of the country they are based in. Institutional investment is defined to be the investment done by institutions or organizations such as banks, insurance companies, mutual fund houses, etc in the financial or real assets of a country.

Marginal standing facility MSF is a window for banks to borrow from the Reserve Bank of India in an emergency situation when inter-bank liquidity dries up completely. Banks borrow from the central bank by pledging government securities at a rate higher than the repo rate under liquidity adjustment facility or LAF in short. The MSF rate is pegged basis points or a percentage. True cost economics is an economic model that includes the cost of negative externalities associated with goods and services.

If the prices of goods and services do not include the cost of negative externalities or the cost of harmful effects they have on the environment, people might misuse them and use them in large quantities without thinking about their ill effects on the env.

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Sub-Rs 10, smartphones may not be so popular anymore, says study. National Entrepreneurship Awards Vodafone Business Services Digilogue - Your guide to digitally transforming your business. TomorrowMakers Let's get smarter about money. CSR Compendium Touching lives of many. ET EnergyWorld A one stop platform that caters to the pulse of the pulsating energy. NIFTY 50 10,