Banking

Interbank Deposit Received (Short-Term Borrowing)

Bank receives a 1-month deposit from another bank as a short-term funding source.

Account NameTypeDebit ($)Credit ($)
Nostro / CBJ Current AccountAsset (+)10,000,000.00-
Interbank Deposits Received (Liability)Liability (+)-10,000,000.00

💡 Accountant's Note

Interbank deposits received are a short-term funding liability. They are more volatile than retail deposits (hot money) and affect the bank's funding stability score under CBJ's Net Stable Funding Ratio (NSFR) calculations.

Practitioner & Systems Framework

💻 ERP Architecture

Same systems as placement — SAP TRM or Oracle FLEXCUBE MM. The NSFR impact of short-term interbank funding must be monitored daily by the Treasury/ALM team. CBJ Basel III rules assign a low Available Stable Funding (ASF) factor to short-term interbank deposits.

⚠️ Audit Flags

Auditors check that over-reliance on short-term interbank funding (concentration risk) is disclosed and within ALCO policy limits. Rates paid must be at market levels (avoid undisclosed subsidies to related-party banks). NSFR compliance is tested by CBJ.

📄 Required Documentation

SWIFT MT320 deal confirmation, dealing ticket, NSFR impact assessment, and ALCO funding mix report.

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Expert Analysis by Qusai Ahmad

General Accountant Supervisor & IFRS Specialist

Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.

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