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.

RELATED TERMS
  1. London Interbank Bid Rate - LIBID

    The average interest rate which major London banks borrow Eurocurrency ...
  2. LIBOR

    LIBOR or ICE LIBOR (previously BBA LIBOR) is a benchmark rate ...
  3. LIBOR Scandal

    A scandal in which financial institutions were accused of fixing ...
  4. LIBOR Flat

    An interest rate benchmark used to establish the floating interest ...
  5. ICE LIBOR

    See LIBOR
  6. Euro LIBOR

    London Interbank Offer Rate denominated in euros. This is the ...
Related Articles
  1. Fundamental Analysis

    The Importance Of LIBOR In Financial Markets

    What is LIBOR and why are its interest rates so important to the financial markets?
  2. Forex Education

    Will OIS Replace LIBOR?

    LIBOR manipulation by large banks during the financial crisis has raised serious doubts about the interest rate's reliability. Now, the question is whether to reform the rate or replace it with ...
  3. Economics

    What Is ICE LIBOR And What Is It Used For?

    In the case of ICE LIBOR, an innocent-sounding set of letters has a profound bearing on every loan you make.
  4. Economics

    What Is The Relationship Between The Federal Funds, Prime And LIBOR Rates?

    The prime rate and LIBOR rate, two of the most prominent benchmark rates, tend to track the federal funds rate closely over time. However, during periods of economic turmoil, LIBOR appears more ...
  5. Active Trading Fundamentals

    What is the OIS LIBOR Spread And What Is It For?

    When the LIBOR-OIS spread rises significantly, it represents the worry that banks might not be able to pay down even their short-term debt obligations.
  6. Investing

    How Tom Hayes Fixed LiborĀ 

    For such an important number, the Libor rate was an easy fix. How did Tom Hayes, the main trader involved in the rate fixing scandal, do it?
  7. Trading Systems & Software

    The Fast-Paced World of Libor & Fixed Income Arbitrage

    LIBOR is an essential part of implementing the swap spread arbitrage strategy for fixed income arbitrage. Here is a step-by-step explanation of how it works.
  8. Bonds & Fixed Income

    5 Signs Of A Credit Crisis

    These indicators can illuminate the depth and severity of problems in the credit markets.
  9. Credit & Loans

    Credit Crisis: Market Effects

    By Brian PerryThe credit crisis has been touted as one of the greatest threats to the global financial system since the 1930s. It is not surprising, then, that the crisis has also produced unprecedented ...
  10. Forex Education

    The Foreign Exchange Interbank Market

    Can your forex broker offer you the most competitive pricing? Learn how the market's biggest players affect you.
RELATED FAQS
  1. What is the difference between LIBOR, LIBID and LIMEAN?

    LIBOR, LIBID and LIMEAN are all reference rates used to benchmark short-term interest rates. The London Interbank Offered ... Read Answer >>
  2. How does LIBOR compare to the Federal Reserve rate as an accurate indicator?

    Explore a comparison of the predictive efficacy of the Federal Reserve's fed funds rate and the Intercontinental Exchange's ... Read Answer >>
  3. What are the differences between the Federal Funds Rate and LIBOR?

    Learn the key differences between the federal funds rate and the London Interbank Offered Rate, including currency denomination ... Read Answer >>
  4. Where on the internet can I find LIBOR rate information?

    Learn what the LIBOR is, which website provides general LIBOR information and which website provides ICE LIBOR data going ... Read Answer >>
  5. How did the LIBOR scandal affect interest rate swaps?

    Find out how the LIBOR scandal directly enriched some interest rate swap traders and harmed others by understating the real ... Read Answer >>
  6. How is Libor determined?

    Libor is the major rate used to price debt stock. Libor is actually a set of several benchmarks that reflect the average ... Read Answer >>
Hot Definitions
  1. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  4. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  5. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
Trading Center