Large-value funds transfer system and Reference rate: Difference between pages

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A funds transfer system through which large-value and high priority funds transfers are made between participants in the system for their own account or on behalf of their customers. 
A reference rate is a widely recognised and quoted interest rate - such as the Fed funds rate, the prime rate, or LIBOR - by reference to which a rate of interest is calculated.
Although, as a rule, no minimum value is set for the payments they carry, the average size of payments passed through such systems is usually relatively large.  


Large-value funds transfer systems are sometimes known as wholesale funds transfer systems.
For example, in the rate ‘LIBOR plus 50 basis points’, LIBOR is the reference rate.


== See also ==
* [[Funds transfer system]]


==See also==
*[[Adjustable-rate mortgage]]
*[[ARRC]]
*[[Base rate]]
*[[€STR]]
*[[Fallback]]
*[[LIBOR]]
*[[Loan agreement]]
*[[OBFR]]
*[[Official Bank Rate]]
*[[Zero rate provision]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:Financial_products_and_markets]]

Revision as of 12:01, 18 August 2019

A reference rate is a widely recognised and quoted interest rate - such as the Fed funds rate, the prime rate, or LIBOR - by reference to which a rate of interest is calculated.

For example, in the rate ‘LIBOR plus 50 basis points’, LIBOR is the reference rate.


See also

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