Mumbai Interbank Offered Rate - MIBOR

DEFINITION of 'Mumbai Interbank Offered Rate - MIBOR'

The interest rate at which banks can borrow funds, in marketable size, from other banks in the Indian interbank market. The Mumbai Interbank Offered Rate (MIBOR) is calculated everyday by the National Stock Exchange of India (NSEIL) as a weighted average of lending rates of a group of banks, on funds lent to first-class borrowers.

BREAKING DOWN 'Mumbai Interbank Offered Rate - MIBOR'

The MIBOR was launched on June 15, 1998 by the Committee for the Development of the Debt Market, as an overnight rate. The NSEIL launched the 14-day MIBOR on November 10, 1998, and the one month and three month MIBORs on December 1, 1998. Since the launch, MIBOR rates have been used as benchmark rates for the majority of money market deals made in India.

RELATED TERMS
  1. Mumbai Interbank Bid Rate - MIBID

    The interest rate that a bank participating in the Indian interbank ...
  2. Reserve Bank Of India - RBI

    The central bank of India, which was established on April 1, ...
  3. Interbank Rate

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

    The financial system and trading of currencies among banks and ...
  5. Interbank Call Money Market

    A short-term money market, which allows for large financial institutions, ...
  6. Euro Overnight Index Average - ...

    The weighted average of overnight Euro Interbank Offer Rates ...
Related Articles
  1. Economics

    London Interbank Offered Rate (LIBOR)

    Learn more about this rate which banks use to determine the amount of interest to charge other banks.
  2. Professionals

    London Interbank Offer Rate (LIBOR)

    CFA Level 1 - London Interbank Offer Rate (LIBOR). Learn how banks use the London interbank offer rate when borrowing funds and how this relates to the fixed-income market.
  3. Investing

    Overnight Rate

    Learn about how banks use this interest rate when lending to other banks.
  4. Mutual Funds & ETFs

    How Interest Rates Affect Mutual Funds

    Find out how changing interest rates impact mutual funds, including bond and money market funds, and how higher rates can discourage investors.
  5. Professionals

    Eurodollar Time Deposit Markets

    CFA Level 1 - Eurodollar Time Deposit Markets, LIBOR and Euribor. Learn the features of forward contracts on bonds. See how a bonds maturity, embedded options and default risk affect the forwards ...
  6. Mutual Funds & ETFs

    Top 3 ETFs for Investing in India

    Find out which exchange-traded funds are poised to perform the best with the continued rise of the Indian economy as a major emerging market.
  7. Retirement

    Can You Retire in India with $200,000 in Savings?

    India's cost-of-living ranks among the lowest in the world, but retiring there presents some challenges unrelated to finances.
  8. Investing News

    Bombay Stock Exchange CEO Ashish Chauhan on India Rising

    India's largest stock exchange is hitting its stride. We talk with CEO Ashish Chauhan in New York.
  9. Investing News

    How Interest Rates Can Go Negative

    Central banks from Europe to Japan have implemented a negative interest rate policy (NIRP) in order to stimulate economic growth.
  10. Investing News

    The Funds Keep Flowing Into Indian Tech Startups

    Investors are increasingly turning their attention to Indian tech startup companies. Billions of dollars are flowing into the startup sector in India.
RELATED FAQS
  1. What is the difference between LIBID and LIBOR?

    Both LIBID and LIBOR are rates primarily used by banks in the London interbank market. The London interbank market is a wholesale ... Read Answer >>
  2. 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 >>
  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. Who determines the LIBOR rate?

    Learn about what the LIBOR rate is, how it is determined and calculated, and who determines what the LIBOR rate on a daily ... Read Answer >>
  5. What is a liquidity squeeze?

    A liquidity squeeze occurs when a financial event sparks concerns among financial institutions (such as banks) regarding ... Read Answer >>
  6. What impact does the Federal Reserve have on a bank's profitability?

    Learn how the Federal Reserve impacts a bank's profitability with its influence on the discount rate, federal funds rate ... Read Answer >>
Hot Definitions
  1. Goodwill

    An account that can be found in the assets portion of a company's balance sheet. Goodwill can often arise when one company ...
  2. Return On Invested Capital - ROIC

    A calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. ...
  3. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  4. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  5. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center