On the other hand, the banks with excess reserves may earn a support rate of interest from the central bank but will prefer to earn higher returns from lending offering their extra reserves to banks that are in deficit on the interbank lending market.
The banks with excess reserves may earn a support rate of interest from the central bank. This is on the other hand. The banks with excess reserves will prefer to earn higher returns from lending. This is on the other hand. This lending is offering their extra reserves to banks. These banks are in deficit on the interbank lending market.