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.
BREAKING DOWN '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.