![Current MSF Rate: What It Means for Borrowers Marginal Standing Facility](https://todaybusinessposts.com/wp-content/uploads/2024/08/Marginal-Standing-Facility.jpg)
Current MSF Rate: What It Means for Borrowers
When interbank liquidity completely dries up, banks, NBFCs and scheduled commercial lenders can borrow money for the short term from the central bank of the country by offering a percentage of the government-approved securities they own as collateral under the Marginal Standing Facility. The question is why do banks and other financial institutions face liquidity…