Interbank lending market

Interbank lending is when banks borrow and lend money to each other. A bank might need money to give out as loans to their customers, but they don't always have enough money on hand to do that. So they can borrow money from other banks in the interbank lending market, just like people borrow money from banks to buy things like cars and homes. The banks that borrow money usually have to pay interest, just like people do when they borrow money. The banks that lend money get to make money from charging interest on the loans.