LIBID: Difference between revisions

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(Update for cessation of LIBOR.)
 
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Formerly and informally a guess at the interest rate at which large banks of good credit standing  might be expected to offer to lend to other such banks in the London inter-bank short-term, unsecured money market at a particular time and in a particular currency. Use of this term is deprecated.
Historically and informally a guess at the interest rate at which large banks of good credit standing  might be expected to offer to lend to other such banks in the London inter-bank short-term, unsecured money market at a particular time and in a particular currency.  


LIBID is formed as a kind of analogy to LIBOR – originally an acronym for London Inter-Bank Offered Rate. One might expect LIBID to be a lower rate than LIBOR but as the term is informal such distinctions are blurred and conceptually a large bank of high credit standing is on both sides of a LIBOR-LIBID deal at the same rate.


As there is no observed rate, informally LIBID is often taken as 1/8th % less than LIBOR.
LIBID was formed as a kind of analogy to LIBOR – originally an acronym for London Inter-Bank Offered Rate.
 
 
LIBOR and LIBID ended in September 2024.


In analogy with London Inter-Bank Offered Rate, LIBID is sometimes expanded as London Inter-bank Bid rate.


== See also ==
== See also ==
* [[LIBOR]]
* [[LIMEAN]]
* [[LIMEAN]]


* [[LIBOR]]
 
==Other resource==
 
*[https://www.bankofengland.co.uk/news/2024/october/the-end-of-libor The end of LIBOR - Press release - Bank of England - 1 October 2024]
 
[[Category:Manage_risks]]
 
[[Category:Manage_risks]]

Latest revision as of 07:05, 4 October 2024

Historically and informally a guess at the interest rate at which large banks of good credit standing might be expected to offer to lend to other such banks in the London inter-bank short-term, unsecured money market at a particular time and in a particular currency.


LIBID was formed as a kind of analogy to LIBOR – originally an acronym for London Inter-Bank Offered Rate.


LIBOR and LIBID ended in September 2024.


See also


Other resource

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