The London Inter-Bank Offered Rate. This is the interest rate offered by prime banks on the London Inter-Bank Market for sterling deposits of a given period at any given time; in effect the rate at which banks themselves borrow money.
Easyform Glossary of Law Terms. — UK law terms.
The London Interbank Offered Rate, that is, the interest rates at which banks borrow funds, in marketable size, in the London Interbank Market.+ LIBORUSALIBOR (or the London Interbank Offered Rate) is a daily reference rate based on the interest rates at which banks borrow short-term funds from banks in the London Interbank Market. There are many different LIBOR rates, depending on duration and currency (for example, one-month, three-month and six-month pound sterling LIBOR, Euro LIBOR, US dollar LIBOR, Japanese yen LIBOR). LIBOR is affected by several factors such as liquidity in the London cash markets, the banks that comprise the contributor panels (which aim to reflect the balance of the market by reporting the average of selected interbank offer rates) and local interest rate policy. LIBOR rates are published daily by Reuters, as well as certain other financial-services publishers.For more information on Eurodollar Rate/LIBOR, see Standard Clauses, Loan Agreement: Borrowing Mechanics (www.practicallaw.com/3-383-6717).For links to loan agreement Eurodollar Rate/LIBOR provisions, see Practice Note, What's Market: Eurodollar Rate/LIBOR Interest Rate Provisions (www.practicallaw.com/8-385-8146).
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.