London Interbank Offered Rate (LIBOR)

London Interbank Offered Rate (LIBOR),

Definition of London Interbank Offered Rate (LIBOR):

  1. The London Interbank Offered Rate (LIBOR) is a benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans.

  2. Interest rate at which the London banks are willing to offer funds in the inter-bank market. LIBOR is the average of rates which five major London banks are willing to lend $10 million for a period of three or six months, and is the benchmark rate for setting interest rates for adjustable-rate loans and financial instruments.

  3. LIBOR, which stands for London Interbank Offered Rate, serves as a globally accepted key benchmark interest rate that indicates borrowing costs between banks. The rate is calculated and published each day by the Intercontinental Exchange (ICE).

How to use London Interbank Offered Rate (LIBOR) in a sentence?

  1. LIBOR is the benchmark interest rate at which major global lend to one another.
  2. LIBOR is administered by the Intercontinental Exchange, which asks major global banks how much they would charge other banks for short-term loans.
  3. The rate is calculated using the Waterfall Methodology, a standardized, transaction-based, data-driven, layered method.

Meaning of London Interbank Offered Rate (LIBOR) & London Interbank Offered Rate (LIBOR) Definition