Mumbai Interbank Offered Rate - MIBOR

AAA

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.

INVESTOPEDIA EXPLAINS '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. LIBOR

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

    The amount charged, expressed as a percentage of principal, by ...
  3. Interest Rate Swap

    An agreement between two parties (known as counterparties) where ...
  4. London Interbank Bid Rate - LIBID

    The average interest rate which major London banks borrow Eurocurrency ...
  5. Brazil, Russia, India And China ...

    An acronym for the economies of Brazil, Russia, India and China ...
  6. Interbank Rate

    The rate of interest charged on short-term loans made between ...
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. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  4. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  5. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  6. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
Trading Center