LIBID and Living will: Difference between pages

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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.
1.  


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.
A contingency plan of how a significant financial institution could be wound up by its supervisor in an orderly manner in the event of a collapse.


As there is no observed rate, informally LIBID is often taken as 1/8th % less than LIBOR.
A requirement of the US Dodd-Frank financial reform law applied to financial institutions with total consolidated assets of $50 billion or more
and non-bank financial companies supervised by the Federal Reserve.


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


Similar requirements apply in other jurisdictions, in relation to institutions considered to be significant on the grounds of their size, degree of interconnectedness with other parts of the financial system, or both.


== See also ==
''Also known as a Resolution plan.''
* [[LIMEAN]]


* [[LIBOR]]


[[Category:Manage_risks]]
2.
 
A set of instructions which specifies what actions are to be taken if an individual becomes unable to act personally due to illness or incapacity.
 
''Also known as an advance decision.''
 
 
==See also==
* [[Bank supervision]]
* [[BRRD]]
* [[Dodd-Frank]]
* [[Recovery plan]]
* [[Resolution]]
* [[Resolution plan]]
 
[[Category:Compliance_and_audit]]

Revision as of 18:56, 30 October 2016

1.

A contingency plan of how a significant financial institution could be wound up by its supervisor in an orderly manner in the event of a collapse.

A requirement of the US Dodd-Frank financial reform law applied to financial institutions with total consolidated assets of $50 billion or more and non-bank financial companies supervised by the Federal Reserve.


Similar requirements apply in other jurisdictions, in relation to institutions considered to be significant on the grounds of their size, degree of interconnectedness with other parts of the financial system, or both.

Also known as a Resolution plan.


2.

A set of instructions which specifies what actions are to be taken if an individual becomes unable to act personally due to illness or incapacity.

Also known as an advance decision.


See also

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