What are LIBOR & MIBOR?

LIBOR- Stands for the London Inter Bank Offered Rate. This is a very popular benchmark and is issued for US Dollar, GB Pound, Euro, Swiss Franc, Canadian Dollar and the Japanese Yen. The British Bankers Association (BBA) asks 16 banks to contribute the LIBOR for each maturity and for each currency. The BBA weeds out the best four and the worst 4, calculates the average of the remaining 8 and the value is published as LIBOR.


MIBOR- Stands for Mumbai Inter Bank Offered Rate and is closely modeled on the LIBOR. Currently there are 2 calculating agents for the benchmark-Reuters and the National Stock Exchange (NSE). The NSE MIBOR benchmark is the more popular of the two and is based on rates polled by NSE from a representative panel of 31 banks/institutions/primary dealers.