Interbank Funding and Deposits

Interbank funding and deposits are bank-to-bank arrangements used to manage liquidity, payment flows, correspondent balances, and short-term balance-sheet needs. This branch distinguishes deposit placements from the broader activity of interbank lending.

Use these pages when the counterparty is another bank and the transaction affects funding cost, liquidity, counterparty exposure, maturity profile, or settlement evidence.

What This Branch Covers

Decision Lens

Start with the counterparty, tenor, collateral, and settlement date. Interbank funding can look like a deposit, loan, placement, or money-market transaction, and the evidence must show which risk the bank actually has.

Evaluation Checklist

• Identify both banks, amount, currency, tenor, rate, collateral, value date, maturity date, and confirmation record.
• Separate customer deposits, interbank placements, secured borrowing, unsecured lending, correspondent balances, and central-bank facilities.
• Check confirmations, treasury tickets, balance-sheet reports, counterparty limits, settlement records, and rate evidence.
• Review whether the transaction changes liquidity, funding cost, counterparty exposure, capital treatment, or maturity mismatch.
• Treat regulatory, accounting, tax, and credit-risk conclusions as professional-advice areas.

Common Mistakes

• Treating interbank deposits as ordinary retail deposits.
• Ignoring tenor, collateral, counterparty limits, and rollover risk.
• Comparing interbank rates without currency and settlement-date context.
• Reviewing bank liquidity without the interbank maturity schedule.

In this section

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