LIBOR Law and Legal Definition

LIBOR is an acronym that stands for London Interbank Offered Rate. It is used by banks and mortgage companies as the average interest rate that they would be charged if borrowing from other. It is based on estimates by leading banks in London and used as a standard for short term interest rates around the world. LIBOR rates are calculated for ten currencies and 15 borrowing periods, ranging from overnight to one year, which are published daily at 11:30 am (London time) by Thomson Reuters.