Interbank Offer Rate

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Interbank Offer Rate

The interest rate that banks in a jurisdiction charge one another for short-term, interbank loans. Major interbank offer rates, notably LIBOR and HIBOR, are considered key benchmark interest rates in the wider economies. Interest rate swaps, for example, often use an interbank offer rate as the reference rate for the floating payer.
References in periodicals archive ?
Interest payments of London Inter Bank Offered Rate plus 3% a year would be payable on the outstanding balance.
The loans typically pay interest based on a spread over the London Inter Bank Offered Rate (LIBOR).
This is because the benchmark Karachi Inter Bank Offered Rate (Kibor) for six months is 9.
Bankers said the cut in the interest rate would reduce the Karachi Inter Bank Offered Rate (Kibor) by 40 to 50 basis points and the benchmark six month rate could be around 9.
Its immediate impact: the six-month benchmark Karachi Inter Bank Offered Rate goes up from 12.
25 percentage point above Japan inter bank offered rate (Jibor).
Through all its production channels, Countrywide now offers a variety of ARMs based on several different indexes, including the Cost of Funds Index (COFI), London Inter Bank Offered Rate (LIBOR), Monthly Treasury Average (MTA), prime rate and Treasury.
Afterward, it becomes an adjustable rate based on the London Inter Bank Offered Rate, or LIBOR, plus 10.
This announcement follows the settlement reached by RBS in February this year with US and UK regulators in relation to investigations into submissions, communications and procedures around the setting of the London Inter Bank Offered Rate ( LIBOR ).
The pressure led this week to Finance Minister Dar to call for $500 million credit for 12 months from the banks in Pakistan at a rate five per cent plus the London Inter Bank Offered Rate, which will bring the total to 5.
Table--1 SBI interest rate, inter bank offered rate, deposit interest rate and Loan interest rate, July 4, 2003 Interest rate Lowest--Highest SBI (one month) 9,3000% Jakarta Inter-bank Offered Rate 9,9340%-10,7500% (one month) Average-9,934 % Deposit (one month) 4,6000%-20,0000% Average-9,5493% Credit interest rate 10,0500%-28,000% Average-18,2852% Source: PIPU-BI
With the interest rate over 1 percent, which includes the London Inter Bank Offered Rate (LIBOR) and the bank's service charge, the loan comes with a repayment period of 25 years with a grace period of 5 years.