LIBOR
DefinitionLondon Inter-Bank Offer Rate. The interest rate that the banks charge each other for loans (usually in Eurodollars). This rate is applicable to the short-term international interbank market, and applies to very large loans borrowed for anywhere from one day to five years. This market allows banks with liquidity requirements to borrow quickly from other banks with surpluses, enabling banks to avoid holding excessively large amounts of their asset base as liquid assets. The LIBOR is officially fixed once a day by a small group of large London banks, but the rate changes throughout the day.
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LIBOR is ...
... part of the Global subject.
... part of the Global subject.
Related Terms
swap spread, Tokyo Interbank Offer Rate, circus swap, constant maturity swap, LIBOR curve, rate differential swap, Treasury yield curve, Eurodollar floating-rate certificate of deposit
LIBOR appears in the definitions of these other terms on BusinessDictionary.com
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