TIBOR
Categories: Credit
TIBOR...LIBOR’s alter ego. Kind of.
TIBOR is the Tokyo Interbank Offered Rate, as LIBOR is London’s. There are two TIBORs: the Japanese yen one and the European one. Both are published by the Japanese Bankers Association (JBA) daily, right before lunch.
The Japanese yen TIBOR is the slightly older sibling of the two. It’s based on the call market rates of Japanese yen, similar to England’s LIBOR. Rather than being something “set” by the government, it’s the going market rate of how much banks are willing to lend each other money for.
The European TIBOR, or Euroyen TIBOR, was created a few years later, which is like the yen TIBOR, but for Japanese offshore market rates. While Japan opened up the world to its markets offshore in the late '80s to get that sweet international investment money, it didn’t create the Euroyen TIBOR until 1998.
TIBOR gives a right-now picture of short-term interbank lending rates, a key economic indicator for Japan’s Ministry of Finance, and anyone in the yen market.
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Finance allah shmoop what is a lie Boer No it's
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