London Interbank Bid Rate(redirected from LIBID)
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London Interbank Bid Rate (LIBID)
The bid rate that a Euromarket bank is willing to pay to attract a deposit from another Euromarket bank in London. Related: LIBOR.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
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