Libor
LIBOR
stands for the
London Interbank Offered Rate
and is the
rate of interest
at which
banks
borrow funds from other banks in the London wholesale (or "interbank")
money market
. The
British Bankers Association
(BBA) LIBOR rate is a widely used
reference rate
for
forward rate agreements
, and
interest rate swaps
. It is based on inter-bank deposit rates offered by designated contributor banks. It is compiled by the BBA and released to the market at about 11:00 each day. # For a precise definition of BBA LIBOR, see the BBA website.
External links
http://www.bba.org.uk/
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