Industry WIKI

The credit channel mechanism of monetary policy describes the theory that a central bank's policy changes affect the amount of credit that banks issue to firms and consumers for purchases, which in turn affects the real economy.

Excess reserves are bank reserves held by a bank in excess of a reserve requirement for it set by a central bank.

The Monetary Policy Committee (Portuguese: Comitê de Política Monetária - Copom) is a department established by the Central Bank of Brazil on June 20, 1996, through Circular No. 2698 (revoked as of January 2, 1998 by Circular No. 2780 of November 12, 1997) in order to define monetary policy guidelines and set the basic interest rate. It regulates the liquidity of the economy through mone

The overnight rate is generally the interest rate that large banks use to borrow and lend from one another in the overnight market. In some countries (the United States, for example), the overnight rate may be the rate targeted by the central bank to influence monetary policy. In most countries, the central bank is also a participant on the overnight lending market, and will lend or borr

The prime rate or prime lending rate is an interest rate used by banks, typically representing the rate at which they lend to their most creditworthy customers. Some variable interest rates may be expressed as a percentage above or below prime rate.