Short-term international interbank loans are charge this interest rate. This interest rate is applied to large loans ranging from one day up to five years between banks. Immediate liquidity borrowing from another bank with a surplus is the typical situation. Also known as the London InterBank Offer Rate.

More On This Topic

Link to This Definition
Did you find this definition of LIBOR RATES helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary