Interbank lending market

US investment bank Jefferies predicts a further increase in interest rates on time deposits in Greece for 2024, favoring a shift from ordinary savings accounts to time deposits.

To date, Greek banks have on average raised interest rates on deposits by just 15%, compared to a eurozone average of 20%, and based on estimates this rate will increase by 50% within 2024. 

Rising interest rates have put loan takers, from consumers to governments, in a bind, with many having taken out loans at interbank rates in the red, as they were for eight successive years in the EU.

Successive rounds of rate increases by central banks have unavoidably affected commercial loan rates.

Moody's said in a report on Monday that the outlook for Greece's banking sector remains positive due to the expected improvements in banks' funding and asset risks.
Despite the still challenging economic conditions, recent improvements will likely lead to stronger deposit growth, a gradual decline in problem loans and marginal profitability.

Inflation has caused disruptions in public life, which has led to the exit of ROBOR (Romanian Interbank Offered Rate, ed. n.) from the game and the introduction of a new reference index for loans, but the National Bank of Romania (BNR) has no other role than that of mathematician of the system, Adrian Vasilescu, strategy strategist at BNR, told AGERPRES on Thursday.

Spokesman of the National Bank of Romania (BNR) Dan Suciu turned critical on Darius Valcov, economic advisor to the Prime Minister, saying that the latter's suggestion that the formula used to calculate the interbank offered rate ROBOR should be changed or that the benchmark rate should be removed all together proves he is in serious confusion about the money market and its role in the

Senior Greek bank officials visiting Washington in the context of the Annual Meetings of the World Bank and the International Monetary Fund have had contacts with major European and US lenders aimed at expanding their funding lines via the interbank market.

After a long period of exclusion, Greek banks have resumed transactions in the interbank market, a sure sign that conditions are returning to normal and expectations are growing.

Turkish banks' funding costs are likely to decline after Central Bank's rate cut, but if the Turkish Lira is pressured by expectations of a further rate cut, it could reverse the benefits to the cost of funding, said Moody's in a note on April 25. 

On April 20, the Central Bank cut its overnight lending rate 50 basis points to 10 percent. 

Turkey's Central Bank raised the interest rate it pays on U.S. dollar-denominated required reserves on Dec. 17, taking its first step towards the policy-tightening some investors have been hoping for when it meets next week.

The Central Bank will face a crucial credibility test when it meets for the last time this year on Dec. 22.

After a long buildup that stirred waves of turbulence in global markets, the Federal Reserve finally is expected to end its seven-year crisis stance with an interest rate increase on Dec. 16.

Most bets are that the Fed will increase the benchmark federal funds rate for the first time in nearly a decade, signaling confidence in U.S. economic growth even as the rest of the world sags.