The study looked at how different banks handle liquidity risk in the interbank market. Riskier banks pay more for funds and borrow less, showing market discipline. Banks with more capital and liquid assets pay less for funds and have better access to the market. When liquidity is imbalanced or during tight monetary policy, banks pay more for funds and hold onto more cash. Small banks suffer more when their risks increase. Having lending relationships helps banks manage liquidity risk. When central banks inject more liquidity, interbank fund prices go down. These findings have implications for financial stability and how monetary policy affects the market.