London Interbank Offer Rate

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London Interbank Offer Rate

The interest rate participating banks offer to other banks for loans on the London market. LIBOR is the most widely used benchmark for short term interest rates in the world, primarily because most of the world's largest borrowers borrow money on the London market. Because it is so prominent, it is often used in other transactions, such as swaps. For example, an interest rate swaps may give the floating rate as "LIBOR +/- X base points." It is set each day by the British Bankers Association, which calculates it by averaging short term, inter-bank, deposit interest rates among the most creditworthy banks. See also: EURIBOR.
References in periodicals archive ?
SBP had in 2004 advised all commercial banks in Pakistan to deploy Kibor as the bench mark rate like London inter-bank offer rate (Libor).
25% over Libor, the London Inter-bank offer rate while the total cost of borrowing after hedging will come around 6% a year.
These participants may be encouraged by recent movements in the spread between the London Inter-Bank Offer Rate (LIBOR) and the short-term Treasury rate.
The dividend paid on the 'B' shares has been set to 70 per cent of the six month London Inter-Bank Offer Rate, which yesterday stood at 4.
Signs of increasing financial strains included the widening spread between the London Inter-Bank Offer Rate (LIBOR) and a comparable short-term Treasury bill.

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