An Exploration on Interbank Markets and the Operational Framework of Monetary Policy in Colombia

Borradores de Economia
Número: 
782
Publicado: 
Clasificación JEL: 
E44, E52, G21
Palabras clave: 
Interbank Market, Overnight Rates, Reserve Demand

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We set a dynamic stochastic model for the interbank daily market for funds in Colombia. The framework features exogenous reserve requirements and requirement period, competitive trading among heterogeneous commercial banks, daily open market operations he