1. Banks borrow and lend wholesale funds amongst themselves, dealing through money brokers, for periods ranging from overnight to five years. 2. The lending bank lends funds and in return accepts the bankers acceptance. 3. Banks monopolized lending for decades by taking in consumer deposits at one set of interest rates and lending those funds to blue-chip companies at higher rates. 4. Banks sell government bonds to the Bundesbank, which in return lends banks funds for two weeks at the repo rate. 5. Beyond that, the IMF will lend funds contributed by other members under two conditions. 6. According to a survey by MMS International, the Bundesbank is likely to keep the repurchase rate steady when it lends fresh funds to commercial banks today. 7. Foreign banks virtually stopped lending funds to Korean banks because of a raft of bankruptcies in Korea. 8. Funds will be lent with treasury bills, known as GKOs, and longer-term bonds, or OFZs, as collateral, the central bank said in a statement. 9. It also reported that the Bank of Japan, the central bank, would lend short-term funds directly to companies to keep them afloat. |