London Interbank Bid Rate(redirected from Interbank Market Bid Rate)
London Interbank Bid Rate (LIBID)
London Interbank Bid Rate
The interest rate at which participating London banks are willing to borrow eurocurrency deposits from other banks. Unlike LIBOR, which is the rate at which banks lend money, LIBID is the rate at which banks ask to borrow. It is not set by any body or organization, but is calculated as the average of the interest rates at which London banks bid for borrowed eurocurrency funds from other banks. It is also the interest rate London banks pay for deposits from other banks. It is an important benchmark in euromarkets.