The rate at which banks borrow from each other on an emergency basis has risen to a near five-year high of 10.02 percent, pointing to the skewed distribution of liquidity in the banking sector given the ample excess reserves lenders held end of last week.
The rise to double digits for the first time since December 2018 shows banks were willing to pay more for funds from fellow lenders via the window mainly used to help meet regulatory daily cash requirements.
