LIBOR

Interbank lending benchmark

LIBOR (London Interbank Offered Rate) was a benchmark interest rate at which major global banks lent to one another.

For decades it served as a reference point for trillions of dollars in financial contracts—mortgages, derivatives, student loans.

A 2012 scandal revealed banks had manipulated the rate for profit, leading to billions in fines and LIBOR's phaseout by 2023, replaced by rates like SOFR.

benchmark

interbank

Between financial institutions

  • LondonEngland's capital city
  • banksFinancial institutions or riversides
  • BBAUndergraduate business credential

submissions · fixing · scandal · manipulation · reform · regulation · oversight · credibility · transparency · governance

lending

loans

Borrowed money arrangements

lender · credit · principal · refinance · default · subprime · secured · unsecured · repayment · amortization

derivatives

swaps

Mutual trades

  • futuresContracts for future delivery
  • optionsAvailable courses of action
  • capsHeadwear or upper limits

floors · collars · hedging · arbitrage · spread · premium

transition

cessation

A full stopping

amendment · conversion

Categories
Opposites
rate variability

LIBORfixed rate

Unchanging interest percentage

flat rate · fixed APR

benchmark type

LIBORprime rate

Bank's benchmark lending percentage

Familiarity
Top 1,000,000
Profile
Used worldwide · Abstract · Rated G