Singapore Interbank Offered Rate

Singapore Interbank Offered Rate (SIBOR)

What Does Singapore Interbank Offered Rate (SIBOR) Mean?

The interest rate at which Asian banks can borrow funds from other banks in the region. In Asia, the SIBOR is used more commonly than is the LIBOR. It is set daily by the Association of Banks in Singapore (ABS). More than anything else, the SIBOR serves as a benchmark, or a reference rate for borrowers and lenders that are involved directly or indirectly in an Asian financial market.

Investopedia explains Singapore Interbank Offered Rate (SIBOR) Because of its location, political stability, and strict legal and regulatory environment as well as the volume of business undertaken there, Singapore is regarded as a major hub of Asian finance. Large regional loans and interest rate swaps involving businesses participating in the Asian economy are quoted or denominated in SIBOR plus a number of basis points.

Related Terms:
• Cash and Cash Equivalents—CCE
• Euro LIBOR
• London Interbank Offered Rate—LIBOR
• Money Markets
• Swap