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Authors
Affiliations
1 Institute of Business Management, GLA University, Mathura, Uttar Pradesh, IN
2 Department of Commerce, MLB Govt. College of Excellence, Gwalior, Madhya Pradesh, IN
Source
Journal of IMS Group, Vol 12, No 1 (2015), Pagination: 73-81
Abstract
Money market plays a crucial role in the growth and development of financial system in a economy. Money market provides a platform for maintaining equilibrium between surplus fund and fund borrower for short-term ranging overnight up to a year. Repo market and Collateralized Borrowing and Lending Obligations (CBLO) segment plays anchor role in marinating liquidity in the financial system.
In this paper an effort has been made analyze the association between both the shortterm money market instrument, CBLO and repo. For the analysis, weekly data of trading volume of both the variables ranging from April 2012 to March 2014 is used. Repo rate and database of CBLO is collected from the web portals of Reserve Bank of India (RBI) and CCIL. For the analysis, unit ischolar_main test followed by co- integration is used to examine the relationship between repo market and CBLO. The Vector Auto Regressive (VAR) model is used investigate the dynamic inter relationship between repo and monetary CBLO.
Keywords
CBLO, Repo Market, VAR, Money Market.
