Reykjavik Interbank Offered Rate - REIBOR

AAA

DEFINITION of 'Reykjavik Interbank Offered Rate - REIBOR'

The formal interbank market rate for short term loans at Icelandic commercial and savings banks. Similar to how most countries use LIBOR as the base rate for variable rate loans, Icelandic banks use REIBOR (plus a premium) as the basis for supplying variable interest rate loans.

INVESTOPEDIA EXPLAINS 'Reykjavik Interbank Offered Rate - REIBOR'

The REIBOR is applied almost exclusively to the borrowing of the Icelandic currency, the Kronur. Market participants can make bids to the interbank market that extend overnight, one week, two weeks, three months, six months, nine months and one year. This incarnation of REIBOR is relatively new as it only formally began operating in 1998.

RELATED TERMS
  1. LIBOR

    LIBOR or ICE LIBOR (previously BBA LIBOR) is a benchmark rate ...
  2. Nordic Tiger

    A colloquial term for the Scandinavian nation of Iceland. Prior ...
  3. Interest Rate

    The amount charged, expressed as a percentage of principal, by ...
  4. Interbank Rate

    The rate of interest charged on short-term loans made between ...
  5. Bank

    A financial institution licensed as a receiver of deposits. There ...
  6. Central Bank

    The entity responsible for overseeing the monetary system for ...
Related Articles
  1. Get To Know The Major Central Banks
    Forex Education

    Get To Know The Major Central Banks

  2. What Are Central Banks?
    Personal Finance

    What Are Central Banks?

  3. How Influential Economists Changed Our ...
    Fundamental Analysis

    How Influential Economists Changed Our ...

  4. The Dark Side Of The WTO
    Economics

    The Dark Side Of The WTO

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. 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. ...
  3. 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 ...
  4. 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. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center