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 ?
In 2012, news that the London Inter-bank Offered Rate (Libor), a benchmark interest rate widely used in the global financial sys- tem for a broad range of financial products and contracts, had been manipulated since at least the early 2000s stunned the financial community.
In 2012, news that the London Inter-bank Offered Rate (Libor), a benchmark interest rate widely used in the global financial system for a broad range of financial products and contracts, had been manipulated since at least the early 2000s stunned the financial community.
an overdraft-like facility) secured against 10 previously unmortgaged ships at an interest cost of London Inter-Bank Offered Rate plus 1.35 percent.
Earlier, UPL Corporation had raised a three billion dollar (about Rs 20 crore) five-year unsecured term loan with a bullet repayment at end of tenure at London Inter-bank Offered Rate (LIBOR) plus 160 basis point per annum to part-finance the acquisition of Arysta Lifescience Inc.
Furthermore, the assumptions for the 364-day Treasury bill rate and the 6-month London Inter-bank Offered Rate (LIBOR) have been adjusted.
If the LIBOR (London Inter-bank Offered Rate) is 3 percent then the interest rates in Lebanon should be a little bit higher," the banker said.
They routinely use interest-based benchmarks, such as the London Inter-bank Offered Rate, to price their products and services.
In a footnote, the bank noted that these were medium-term loans from China that were meant for balance of payments support with an inbuilt bullet repayment feature, a maturity of two to three years and a floating rate based on the London Inter-bank Offered Rate (Libor).
The New Facility bears interest at a rate per annum equal to the greater of (a) the three-month London Inter-Bank Offered Rate, or (b) 1.50%, with such base rate being capped at no greater than 4.25%, plus an applicable margin of 10.50%.
EDYRF rates are based on the respective 90-day London Inter-Bank Offered Rate plus 200 basis points and the term premia for longer maturities.
Interest is initially fixed, but rates can be changed at the lender's discretion and often rely on the London Inter-bank Offered Rate (Libor), which banks have been found to have rigged.
International borrowing has also gained ground after the local corporate bond market was shaken by the collapse of Chase Bank and Imperial Bank which owe bondholders nearly Sh10 billion excluding interest.IFC did not say what interest rate it will charge on the Co-op Bank loan but it has priced previous similar facilities to the lender at the London Inter-bank Offered Rate (Libor), a global benchmark, plus an unspecified premium.

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