What is LONDON INTERBANK OFFERED RATE (LIBOR)?

The average of rates for which five major London banks will lend $10 million for a period of three or six months. It is the benchmark rate for setting interest rates for adjustable-rate loans and financial instruments. This is the interest rate at which the London banks will offer funds to the interbank market.

More On This Topic



Link to This Definition
Did you find this definition of LONDON INTERBANK OFFERED RATE (LIBOR) 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