Banking Term: LIBOR
- LIBOR stands for London Interbank Offered Rate.
- It is considered as the average interest rate estimated by leading banks in London that the average leading bank would be charged if borrowing from other banks.
- It serves as the first step to calculating interest rates on various loans throughout the world.
- There are a total of 35 different LIBOR rates each business day.
- The most commonly quoted rate is the three-month U.S. dollar rate.