search query: @indexterm Banks / total: 1629
reference: 310 / 1629
| Author: | Angelini, P. |
| Title: | Are banks risk averse? Intraday timing of operations in the interbank market |
| Journal: | Journal of Money, Credit and Banking
2000 : FEB, VOL. 32:1, p. 54-73 |
| Index terms: | BANKS RISK MARKETS |
| Language: | eng |
| Abstract: | This paper presents a simple theory of intraday behavior in the interbank market. The timing of borrowing and lending operations depends on the information available on two key variables: the end-of-day balance from the clearing system -- the algebraic sum of incoming (+) and outgoing (-) daily payments -- and the short-term interest rate. When the former is the relevant source of uncertainty, risk-averse banks should tend to operate close to the end of the business day, when the balance becomes observable. |
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