Notes on London Inter Bank Bid Rate (LIBID)

By | May 28, 2017

London Inter-Bank Bid Rate (LIBID) is the rate bid by banks on Eurocurrency deposits. This is a kind of international rate that banks lend to other banks.It is calculated as one eight percentage point lower than the London Inter-Bank Offered Rate (LIBOR).

It is also described as the main interest rate at which major banks in The London Inter-Bank Market are agreeable to borrow funds from each other, as opposed to the lending rate the London Inter Bank Offered Rate quoted by banks willing to lend surplus Euro-dollar deposits. This bid rate is generally lower than the two interest rates.