The interbank lending market refers to the market where financial institutions conduct short-term financing activities in the form of currency lending. Interbank lending funds are mainly used to make up for the shortage of short-term funds of banks, the difference in bill settlement and the need to solve the shortage of temporary funds. Also known as "inter-bank market", it is a market for short-term and temporary position adjustment between financial institutions. Federal funds refer to the reserves deposited by American commercial banks in the Federal Reserve Bank (that is, the central banking system), including statutory reserves and funds exceeding the reserve requirements. These funds can be lent to other member banks to meet their demand for short-term reserves and play the role of interbank lending market.