Banking Term: LIBOR

Find important banking term that is useful in upcoming banking exam.

May 16, 2015 16:29 IST

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.

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