Definition

A loan between banking institutions, with terms ranging from overnight to one week. Interbank loans are facilitated to cover liquidity requirements set by a regulatory agency. In instances where a bank has a shortage of liquid assets, it borrows from other banks whose liquid assets are in excess than that required.

Note the huge drop off on the second chart, this was done January 03, which means they knew ahead of time the crash was coming. Obvious they don’t want to borrow to anybody as who knows where the crash will end up. I went back to 1998 and checked with major drops such as above and most were before huge drops in the DOW and some after large runs in the DOW . Average of 20% correction entailed.  some #’s    9300-7480,   10425-8000,   10650-9680,    12800-10400.  Second chart shows liquidity was not an issue thru the years of late but now at the bottom and time to reverse.