Module_6 - Module 6 Learning Goals To understand the...

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Module 6
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Learning Goals To understand the workings of the interbank market To know the different instruments that are traded in this market. Context The Board of Directors of our savings bank has decided to expand our banking activity, offering clients a new service via the interbank market to provide products with higher short-term returns. To achieve this we must first prepare a report for those clients. The board has assigned you with this new task. The first thing you must do is recall the roles of the interbank market and the instruments available. 2
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Overview Introduction Market, Instruments and Types of operation Continuous assessment The data files depositos.xlsx contains information on deposits with different maturities for daily data. Calculate the number of operations, the size and the average interest rate for each type of operation. Compile the data in a table and draw some conclusions about the results. 3
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Introduction
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5 Introduction The Interbank Market is a market where very short-term highly liquid instruments are traded. These are large-scale markets where the players are credit institutions. Among its functions is to allow us to obtain the price of the money via the loans that financial bodies carry out with each other. It is an organised market that settles its operations via the Bank of Spain's settlement system (SLBE/TARGET) Other functions of this market are: To allow financial bodies to manage their treasury surplus efficiently, with the possibility of lending among themselves for a profit. To allow them to cover possible shortfalls in their compliance with liquidity ratios, given that they can borrow very short-term funds. To allow them to obtain financing for active operations (in other words,
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Module_6 - Module 6 Learning Goals To understand the...

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