Interbank certificates of deposit are certificates of time deposits. Specifically, banks and other financial institutions issue a record-based time deposit certificate, which can be circulated in the national banking market. The main users of this certificate of deposit are members of the domestic banking market and major fund companies and other financial industries. Its issuance amount is large, and the term of deposit certificate is uncertain, so it is a relatively free product.

What does interbank deposit certificate mean?

Under normal circumstances, the time of interbank certificates of deposit varies from 1 month to 1 year, and the interest is calculated at a fixed or floating interest rate. To put it bluntly, interbank deposit certificates are bank deposit certificates between deposit institutions, and investment can earn interest income. Interbank certificates of deposit are mainly issued by joint-stock banks and city commercial banks, and the buyers are mostly state-owned banks and rural commercial banks. These banks have many sources of deposits, and the cost of obtaining funds is low, so they can obtain relatively stable expected returns by investing in interbank deposit certificates. If a bank is short of liquidity and needs capital turnover, interbank borrowing will occur, that is, inter-bank financing will be done well. The shortest is overnight borrowing, that is, borrowing money on the first day and paying it back the next day. As a financing method, interbank lending has really played a great role in alleviating the urgent needs of banks. However, there are indeed many inconveniences. Nowadays, as a substitute for interbank deposits, interbank certificates of deposit will play an important role in improving the utilization rate of funds.