Author: Maksim A. Markov, Cand. Sc. (Econ.), Associate-Prof. of Banking Dept., Plekhanov Russian University of Economics

Abstract: The article considers the special area of the banking activity, i.e. the interbank business. The paper discusses the principles of its implementation, the aims and objectives. The main directions of the interbank business are defined. They include interbank lending, corresponding banking relationships, conversion, stock exchange and trade finance. The procedure of the aforementioned operations and pricing on them are examined. The major indicators reflecting the condition of various segments of interbank cooperation market are determined. In addition, the author analyzes the economic effect banks can get of conducting various types of interbank operations and the way banks should develop cooperation to make it more interesting and mutually beneficial.

Keywords: Interbank lending, MIBID, MIBOR, MIACR, INSTAR , correspondent account, foreign exchange operation, underwriting, REPO deals, trade finance