BANKING AFFAIRS

Detailed explanation-1: -The MIBID rate would be lower than the interest rate offered to those wanting to borrow funds, known as Mumbai Interbank Offered Rate (MIBOR), one iteration of an interbank rate, which is the rate of interest charged by a bank on a short-term loan to another bank.

Detailed explanation-2: -The Mumbai Inter-Bank Offered Rate (MIBOR) is the interest rate benchmark at which banks borrow unsecured funds from one another in the Indian interbank market. It is currently used as a reference rate for corporate debentures, term deposits, forward rate agreements, interest rate swaps, and floating-rate notes.

Detailed explanation-3: -The interbank rate, also known as the federal funds rate, is the interest charged on short-term loans made between financial institutions. The term “interbank rate” may also refer to the foreign exchange rates paid by banks when they trade currencies with other banks.

Detailed explanation-4: -Definition: LIBOR, the acronym for London Interbank Offer Rate, is the global reference rate for unsecured short-term borrowing in the interbank market. It acts as a benchmark for short-term interest rates. It is used for pricing of interest rate swaps, currency rate swaps as well as mortgages.