market loans

these are very important because they act a'top-up'to replenish the bank is balance at the bank of england . interest is earned on them .
they comprise largely unsecured market loans , mainly in the inter-bank market . included here are each bank is holding of certificates of deposits (CDs) issued by other banks and builing societies . the major interest rate in the sterling inter-bank market is LIBOR (LONDON INTER BANK OFFER RATE ) WHICH is used to calculate interest rates on loans to large company ( corporate) borrowers and as ameasure of the cost of funds raised in the enter-bank market .
as well as the inter-bank marked there are other wholeasale money markets : CDs, local authority , finance house , commercial paper (cp) ang inter-company . as you might expect from its name, the inter-company market does not involve banks directly , because all the parties are companies use their banks only to process their cheques and not provide the finance .
commercial paper is much like aCD ,except that it is usually issued by company whose shares are quoted on the stock exchange and with apaid up share capital of at least $25m . banks , building societies and local authorities can also issue cp.