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. Bank

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

    The entity responsible for overseeing the monetary system for ...
  5. Interest Rate

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

    The rate of interest charged on short-term loans made between ...
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. India Is Eclipsing China's Economy As ...
    Economics

    India Is Eclipsing China's Economy As ...

  4. The 5 Things You Never Knew About Auto ...
    Credit & Loans

    The 5 Things You Never Knew About Auto ...

comments powered by Disqus
Hot Definitions
  1. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  2. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  3. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  4. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  5. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  6. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
Trading Center