Most US banks would not lend cash overnight for less than 25 basis points over the interest rate paid on balances held at the Federal Reserve, a survey of banking chiefs shows.

Out of 31 domestic firms that said they would be willing to lend in the unsecured overnight wholesale funding market, 26 (83.9%) said they would do so only in return for at least 26bp over the interest on excess reserves (IOER) rate. Eight of these banks said they would demand at least 50bp before opening their wallets.