Wholesale commercial bank money represents the balances held by commercial banks with each other or with the central bank, used for large-scale transactions between financial institutions. This money is distinct from retail deposits held by individuals or businesses. It facilitates interbank lending, payments, and other large financial operations. This form of money is central to the functioning of the wholesale financial markets.
Context
Discussions about wholesale commercial bank money are increasingly connected to the potential applications of distributed ledger technology (DLT) in interbank settlements. Projects are exploring how tokenized forms of this money on DLT platforms could improve efficiency and reduce settlement risk. Central banks are evaluating the implications of such innovations for financial stability and monetary policy. The modernization of wholesale payment systems is a key area of focus for financial authorities.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
