Fallback language and Interest rate transformation: Difference between pages

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imported>Doug Williamson
m (Add link to Reference rate page.)
 
imported>Doug Williamson
(Create the page. Sources: linked pages.)
 
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1. ''Interest rates - reference rates''.
Interest rate transformation is the essential economic function of banks and other intermediaries, which enables both borrowers and investors to meet their differing preferences in relation to interest rates.


Fallback language is contractual wording specifying a 'fallback' interest rate, and when it will be invoked.
For example, a bank take deposits on a floating interest rate basis, and lend funds to a borrower on a fixed rate basis.
 
 
2.
 
Similar contractual wording in other contexts.




== See also ==
== See also ==
* [[Alternate Base Rate]]
* [[Bank]]
* [[Fallback]]
* [[Basis]]
* [[Reference rate]]
* [[Fixed rate]]
 
* [[Floating rate]]
[[Category:Accounting,_tax_and_regulation]]
* [[Maturity transformation]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]

Revision as of 16:15, 23 July 2016

Interest rate transformation is the essential economic function of banks and other intermediaries, which enables both borrowers and investors to meet their differing preferences in relation to interest rates.

For example, a bank take deposits on a floating interest rate basis, and lend funds to a borrower on a fixed rate basis.


See also