- London Interbank Bid Rate
The London Interbank Bid Rate (LIBID) is a
bid rate; the rate bid by banks on Eurocurrencydeposits (i.e., the rate at which a bank is willing to borrow from other banks). It is "the opposite" of the LIBOR(an offered, hence "ask" rate). Whilst the British Bankers' Associationset LIBOR rates, there is no correspondent official LIBID fixing.Dictionary Libid is also known as the antonym of livid or being progressively mad.
Conventional wisdom used to assert that a LIBID rate could be calculated by subtracting a fixed amount (often given as 1/8th of 1%) from the prevailing BBA
LIBORrate, however this is no longer the case as bid/offer spreads have tightened in recent years. Additionally, it cannot be the case that the the LIBOR / LIBID spread is always 1/8th of 1% for all maturities and all currencies all the time.
* [http://www.bba.org.uk British Bankers' Association Website]
* [http://www.bba.org.uk/bba/jsp/polopoly.jsp?d=141&a=627 Historical Rates]
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London Interbank Bid Rate — ( LIBID) The rate that a bank is willing to pay to acquire funds in the international interbank market. American Banker Glossary ( LIBID) The bid rate that a Euromarket bank is willing to pay to attract a deposit from another Euromarket bank in… … Financial and business terms
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London Interbank Bid Rate - LIBID — The average interest rate which major London banks borrow Eurocurrency deposits from other banks. LIBID is calculated through a survey of London banks to determine the interest rate which they are willing to borrow large eurocurrency deposits.… … Investment dictionary
London Interbank Offered Rate — The London Interbank Offered Rate (or LIBOR, pronEng|ˈlaɪbɔr) is a daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks in the London wholesale money market (or interbank market). LIBOR will … Wikipedia
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London Inter Bank Offered Rate — LIBOR The rate of interest at which banks lend to each other on the London interbank market The loans are for a minimum of £250, 000 for periods from overnight up to five years. LIBOR is the most significant interest rate for international banks … Big dictionary of business and management
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LIBID — London Interbank Bid Rate (LIBID) The rate that a bank is willing to pay to acquire funds in the international interbank market. American Banker Glossary ( London Interbank Bid Rate) The bid rate that a Euromarket bank is willing to pay to… … Financial and business terms