81,695
edits
London Inter Bank Offered Rate: Difference between revisions
London Inter Bank Offered Rate (view source)
Revision as of 22:11, 14 January 2023
, 14 January 2023no edit summary
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 1: | Line 1: | ||
{{a|g| | {{a|g|{{image|Dramatic Chipmunk|png|DID SOMEONE SAY THE L WORD?}}}}The [[London Inter Bank Offered Rate]], known fondly as “[[LIBOR]]” is — or until now has been — the basic [[Interest|rate of interest]] used in lending between banks on the London interbank market and also used as a reference for setting the [[interest rate]] on other loans. | ||
Each day, the administrator would ask major global banks at what rate could they borrow from other banks for short-term loans, take out the highest and lowest figures and calculate a “trimmed average” from the remainder. Once the rates for each maturity and currency are calculated and finalized, they are announced/published once a day at around 11:55 am London time by the [[British Bankers’ Association]] who, it is fair to say, didn’t have a terribly good handle on what [[LIBOR]] was used for and how serious it might be if someone abused the privilege of helping to set it. | Each day, the administrator would ask major global banks at what rate could they borrow from other banks for short-term loans, take out the highest and lowest figures and calculate a “trimmed average” from the remainder. Once the rates for each maturity and currency are calculated and finalized, they are announced/published once a day at around 11:55 am London time by the [[British Bankers’ Association]] who, it is fair to say, didn’t have a terribly good handle on what [[LIBOR]] was used for and how serious it might be if someone abused the privilege of helping to set it. | ||