Are you livid? If you’re not, either you’re not British...or LIBID is more your cup of tea.
LIBID (like LIBOR, if you’re familiar with that one) is a reference rate set by the banks in the London interbank market. While LIBID is a bid rate (the rate banks are bidding on eurocurrency deposits) LIBOR is the ask rate: the rate banks are willing to lend.
To be clear, eurocurrency deposits aren’t euros. They’re any currency (like the U.S. dollar) that’s deposited in any country except that currency’s country (like USD into European banks, or any non-U.S. bank).
LIBID...the London Interbank Bid Rate...is the less-popular child of the London interbank market, even though LIBOR and LIBID are two sides of the same coin. Still, LIBID is important since, like LIBOR, it’s a reference rate, meaning that it’s the basis for a bunch of other interest rates.
It’d be remiss of us not to mention the scandal that happened with LIBOR (and therefore kind of LIBID by default...and yes, this story will make you actually livid). These rates are supposed to be market rates, but it was revealed that banks were colluding to set these rates in their own favor (see LIBOR for more deets).
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Finance: What is LIBOR?21 Views
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not the result of these two zoo animals Mating lie
Boer stands for london interbank offering rate And it's basically
just the british quote fed unquote central bank rate reflecting
the absolute lowest interest rate at which the british banking
system well loan money to its best Most well heeled
customers like you know sainsbury's and bp and barclays and
the guy who plans royal weddings So library is the
best or cheapest rate at which the british banking system
will lend money Most loans come at some premium to
lie before i risk your loans might come in something
like on a live or plus fifty basis points or
something like that so that if lie boris currently quoted
at two point two five percent interest well then the
lie bore plus fifty loan would be loaned out at
two point seven five percent interest And libras important has
been around forever and much of the world uses it
as thie pegging number two then add some risk percentage
on top of it when they quote loans to whoever
they're loaning money to That's basically it No need for 00:01:08.819 --> [endTime] any wild animals teo you know get wild