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London Interbank Bid Rate - LIBID

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Definition of 'London Interbank Bid Rate - LIBID'

The average interest rate which major London banks borrow Eurocurrency deposits from other banks. LIBID is calculated through a survey of London banks to determine the interest rate which they are willing to borrow large eurocurrency deposits.
Investopedia Says

Investopedia explains 'London Interbank Bid Rate - LIBID'

Unlike LIBOR, which is determined by the average interest rate which banks are willing to lend eurocurrency deposits, LIBID refers to the rate which banks bid to borrow.

Related Definitions

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    Eurocurrency

    Currency deposited by national governments or corporations in banks outside their home market. This applies to any currency and to banks in any country. For example, South Korean won ...
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  • London Interbank Offered Rate - LIBOR

    An interest rate at which banks can borrow funds, in marketable size, from other banks in the London interbank market. The LIBOR is fixed on a daily basis by the British Bankers' ...
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  • Euro LIBOR

    London Interbank Offer Rate denominated in euros. This is the interest rate that banks offer each other for large short-term loans in euros. The rate is fixed once a day by a small group ...
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    • London Interbank Mean Rate - LIMEAN

      The mid-market rate in the London Interbank market, which is calculated by averaging the offer rate (LIBOR) and the bid rate (LIBID). The LIBOR is the rate at which funds are sold in the ...
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    • Bid-Ask Spread

      The amount by which the ask price exceeds the bid. This is essentially the difference in price between the highest price that a buyer is willing to pay for an asset and the lowest price ...
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