BANKING AFFAIRS

Detailed explanation-1: -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.

Detailed explanation-2: -The average-often referred to in the singular even though there are 150 rates-is called the London interbank offered rate (LIBOr). It is one of the best known and most important interest rates in the world.

Detailed explanation-3: -The London Interbank Offered Rate (LIBOR) is a set of interest rates calculated from submissions by large global banks. LIBOR rates are supposed to represent the cost of borrowing among the banks.

Detailed explanation-4: -LIBOR, which stands for London Interbank Offered Rate, serves as a globally accepted key benchmark interest rate that indicates borrowing costs between banks.

Detailed explanation-5: -The London Interbank Offered Rate (LIBOR) is a measure of the average rate at which banks are willing to borrow wholesale unsecured funds. It is administered by ICE Benchmark Administration. It is calculated based on submissions from selected panel banks and is published in 5 currencies and a range of tenors.