London Interbank Mean Rate - LIMEAN


DEFINITION of '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 market, while the LIBID is the rate at which the funds are purchased in the market.

BREAKING DOWN 'London Interbank Mean Rate - LIMEAN'

The LIMEAN rate can be used by institutions borrowing and lending money in the interbank market, instead of using the LIBID or LIBOR rates, in any lending agreements. It can also be used to gain insight into the average rate at which money is being borrowed and lent in the interbank market.

  1. LIBOR

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  2. The City

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  3. Interbank Rate

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  4. London Interbank Bid Rate - LIBID

    The average interest rate which major London banks borrow Eurocurrency ...
  5. Bank

    A financial institution licensed as a receiver of deposits. There ...
  6. Interbank Market

    The financial system and trading of currencies among banks and ...
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