Interbank Rate |
| The interbank rate or London Inter-Bank Offer Rate (LIBOR) is the rate that the banks charge each other for loans and applies to very large loans borrowed for periods between one day and several years. Banks short of liquidity can borrow quickly from other banks, enabling them to avoid holding excessively large amounts of their asset base as liquid assets. LIBOR is officially fixed once a day by a small group of large London banks, but the rate changes throughout the day. |
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