Banks with strong relationships are more likely to borrow money from each other in the interbank market. These relationships help banks access funds more easily and at lower interest rates, especially if they have a lot of reserves or non-performing loans. Smaller banks and those with more troubled loans rely more on relationships for liquidity. Banks tend to form relationships with others that have different liquidity risks, which helps them manage their own liquidity risk better. Overall, having strong relationships in the interbank market helps banks deal with market challenges and ensure they have enough money to operate smoothly.