Reykjavik Interbank Offered Rate - REIBOR

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.

BREAKING DOWN '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. Iceland Stock Exchange – ICEX

    A stock exchange located in Reykjavik, Iceland. The Iceland Stock ...
  2. Interbank Rate

    The rate of interest charged on short-term loans made between ...
  3. Nordic Tiger

    A colloquial term for the Scandinavian nation of Iceland. Prior ...
  4. Interbank Market

    The financial system and trading of currencies among banks and ...
  5. ISK

    The currency abbreviation or the currency symbol for the Iceland ...
  6. Interbank Call Money Market

    A short-term money market, which allows for large financial institutions, ...
Related Articles
  1. Retirement

    Retire In Iceland With $200,000 of Savings?

    Iceland isn't cheap. Yet, by eating and drinking local products, ditching the car and flying budget airlines, affordable retirement may just be feasible.
  2. Retirement

    How Much Money Do You Need to Retire in Iceland?

    Dreaming about retiring in this beautiful, mysterious country? Here’s how much your major expenditures – housing, healthcare and more – might cost.
  3. 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.
  4. Retirement

    Iceland's Top Retirement Destinations

    Remote landscapes and rugged beauty are a given. But the country also offers lively metropolises, brimming with cultural activities and key amenities.
  5. Economics

    London Interbank Offered Rate (LIBOR)

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

    Understanding Term Loans

    A loan from a bank for a specific amount that has a specified repayment schedule and a floating interest rate.
  7. Investing Basics

    How Banks Set Interest Rates On Your Loans

    On the face of it, figuring out how a bank makes money is a pretty straightforward affair. A bank earns a spread on the money it lends out from the money it takes in as a deposit. The net interest ...
  8. 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 ...
  9. Fundamental Analysis

    The Importance Of LIBOR In Financial Markets

    What is LIBOR and why are its interest rates so important to the financial markets?
  10. Professionals

    Introduction To Loans

    Learn about the many types of loans and how they function in business.
RELATED FAQS
  1. 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 >>
  2. 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 >>
  3. 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 >>
  4. 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 >>
  5. Which is better, a fixed or variable rate loan?

    A variable interest rate loan is a loan in which the interest rate charged on the outstanding balance varies as market interest ... Read Answer >>
  6. What is the difference between a fixed annual percentage rate (APR) and a variable ...

    Fixed ARP and variable APR loans operate differently but serve the same purpose: to collect interest from a borrower so the ... Read Answer >>
Hot Definitions
  1. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  2. 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 ...
  3. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  4. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  5. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  6. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
Trading Center