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REPORT| Practical Banking
IBOR_




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IBOR-Interbank Offered Rate
The Interbank Offered Rates are daily reference rates based on the averaged interest rates at which banks offer to lend unsecured funds to other banks in wholesale money markets (or interbank markets).
OVERNIGHT Rate
The overnight rate is generally the interest rate that large banks use to borrow and lend from one another in the overnight market. In some countries (United States Of America, for example), the overnight rate may be the rate targeted by the central bank to influence monetary policy. In most countries, the central bank is also a participant on the overnight lending market, and will lend or borrow money to some group of banks.
There may be a published overnight rate that represents an average of the rates
at which banks lend to each other; certain types of overnight operations may be
limited to qualified banks. The precise name of the overnight rate will vary from
country to country.
LIBOR
The London Interbank Offered Rate is the average interest rate estimated by leading banks in London that the average leading bank would be charged if borrowing from other banks.It is usually abbreviated to Libor or LIBOR, or more officially to ICE LIBOR (for Intercontinental Exchange Libor). It was formerly known as BBA Libor (for British Bankers' Association Libor or the trademark bbalibor) before the responsibility for the administration was transferred to Intercontinental Exchange. It is the primary benchmark, along with the Euribor, for short-term interest rates around the world.
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