Mumbai Interbank Bid Rate - MIBID

AAA

DEFINITION of 'Mumbai Interbank Bid Rate - MIBID'

The interest rate that a bank participating in the Indian interbank market would be willing to pay to attract a deposit from another participant bank. The MIBID is calculated everyday by the National Stock Exchange of India (NSEIL) as a weighted average of interest rates of a group of banks, on funds deposited by first-class depositors.

INVESTOPEDIA EXPLAINS 'Mumbai Interbank Bid Rate - MIBID'

This would be the interest rate that one participating bank would pay another to attract the deposit of funds. The MIBID rate would be lower than the interest rate offered to those wanting to borrow funds, known as Mumbai Interbank Offered Rate (MIBOR). This is to provide the bank a profit from the spread of interest earned and paid.

RELATED TERMS
  1. LIBOR

    LIBOR or ICE LIBOR (previously BBA LIBOR) is a benchmark rate ...
  2. Interbank Rate

    The rate of interest charged on short-term loans made between ...
  3. Interbank Market

    The financial system and trading of currencies among banks and ...
  4. Mumbai Interbank Forward Offer ...

    A rate that Indian banks and other derivative market participants ...
  5. National Stock Exchange Of India ...

    The National Stock Exchange is India's largest financial market. ...
  6. Mumbai Interbank Offered Rate - ...

    The interest rate at which banks can borrow funds, in marketable ...
Related Articles
  1. Who determines interest rates?
    Investing

    Who determines interest rates?

  2. Forces Behind Interest Rates
    Economics

    Forces Behind Interest Rates

  3. How The U.S. Government Formulates Monetary ...
    Personal Finance

    How The U.S. Government Formulates Monetary ...

  4. What Investors Should Know About Interest ...
    Investing Basics

    What Investors Should Know About Interest ...

comments powered by Disqus
Hot Definitions
  1. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  2. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  3. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  4. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  5. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  6. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
Trading Center