Overnight Money
Barron's Banking Dictionary:
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Overnight Money
Money that is sold in the interbank market by banks with idle funds to those needing temporary funds. The Fed Funds market, where financial institutions sell Excess Reserves from reserve accounts kept at Federal Reserve Banks to one another, is the largest source of overnight funds. Fed funds are due back at the selling bank at the start of business the following day. See also Matched Sale-Purchase Agreement; Repurchase Agreement.
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Barron's Banking Dictionary
Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.
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