LIBOR


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Related to LIBOR: Euribor

LIBOR

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.

LIBOR

LIBOR (London Interbank Offered Rate)

the INTEREST RATE on dollar and other foreign currency deposits at which larger banks are prepared to borrow and lend these currencies in the EUROCURRENCY MARKET. The LIBOR rates reflect market conditions for international funds, and are widely used by the banks as a basis for determining the interest rates charged on dollar and foreign currency loans to business customers.

LIBOR (London Interbank Offered Rate)

the INTEREST RATE on dollar and other foreign currency deposits at which larger banks are prepared to borrow and lend these currencies in the EUROCURRENCY MARKET. The LIBOR rates reflect market conditions for international funds and are widely used by the banks as a basis for determining the interest rates charged on dollar and foreign currency loans to business customers.

LIBOR

(pronounced “lie-bore”) London Interbank Offered Rate.The rate that European banks use to charge interest to each other on large loans.LIBOR is used as an index for many commercial loans in the United States,rather than a reference to the prime rate.Often quoted as something similar to “135 basis points over 1-year LIBOR,”so that if LIBOR on 1-year loans is currently at 5.66 percent,then the quoted loan rate for the customer will be 5.66 percent plus 1.35 percent,or 7.01 percent.

References in periodicals archive ?
Following input from the LIBOR Oversight Committee and a broad consultation with stakeholders from around the world, IBA developed the final ICE LIBOR output statement, originally published in the Roadmap for ICE LIBOR4, guided by the recommendations in the Wheatley review, the IOSCO principles and the FSB report.
Leaving aside the cringe-worthy, laddish excesses of some of the individuals involved, a variety of banks have been fined a total of about $9 billion (so far) for skewing Libor rates in the direction that suited their trading books at the time.
With regulators proposing new rates and Libor still around for another four-plus years, the process of changing over seems to be getting off to a good start.
The London interbank offered rate, or Libor, is behind securities including student loans and mortgages.
The move comes after Bank of England governor Mark Carney proposed scrapping Libor last week in favour of a widespread adoption of the Sterling Overnight Index Average (Sonia).
The credibility of Libor as a benchmark was shaken after a scam in which it was allegedly manipulated by banks for their benefit.
The settlement comes after Barclays agreed to pay 453m US dollars (PS347m) to settle a Libor probe in 2012 with the United States Justice Department, the Commodity Futures Trading Commission and the Financial Conduct Authority.
The men had been accused of helping trader Tom Hayes manipulate the Libor rate over a period of four years.
A It reduced its fees by around PS4million but, unlike Libor rate rigging, there is no evidence those involved personally benefited.
The process of setting the Libor came under scrutiny after Barclays admitted in June 2012 that it had submitted false information to keep the rate low.
The Libor is produced under the auspices of the British Bankers Association (BBA) on a daily basis; it "is produced for ten currencies with 15 maturities quoted for each--ranging from overnight to 12 months--thus producing 150 rates each business day," according to the BBA website (http://www.
NYSE Euronext will take over running Libor from the British Bankers' Association (BBA) trade body, which has run them since the 1980s, the independent British committee set up to choose the new operator for Libor said on Tuesday.