what is the interbank rate 
the interbank rate is the rate of interest charged on short term loans made between u s banks banks may borrow money from other banks to ensure that they have enough liquidity for their immediate needs or lend money when they have excess cash on hand the interbank lending system is short term typically overnight and rarely more than a week the term interbank rate also refers to the interest rate charged when banks conduct wholesale transactions in foreign currencies with banks in other nations 