Singapore Interbank Offered Rate - SIBOR

Definition of 'Singapore Interbank Offered Rate - SIBOR'


The interest rate at which banks located in Asian time zones can borrow funds from other banks located in the region. In Asia, the SIBOR is used more commonly than the LIBOR. It is set daily by the Association of Banks in Singapore (ABS). More than anything else, the SIBOR serves as a benchmark, or reference rate for borrowers and lenders that are directly or indirectly involved in an Asian financial market.

Investopedia explains 'Singapore Interbank Offered Rate - SIBOR'


Because of its location, political stability, strict legal and regulatory environment as well as the volume of business undertaken in Singapore, the city state is regarded as a major hub of Asian finance. Commonly, very large loans to businesses in the area and interest rate swaps involving businesses participating in the Asian economy will be quoted or denominated in SIBOR plus a number of basis points.



comments powered by Disqus
Hot Definitions
  1. Cash and Carry Transaction

    A type of transaction in the futures market in which the cash or spot price of a commodity is below the futures contract price. Cash and carry transactions are considered arbitrage transactions.
  2. Amplitude

    The difference in price from the midpoint of a trough to the midpoint of a peak of a security. Amplitude is positive when calculating a bullish retracement (when calculating from trough to peak) and negative when calculating a bearish retracement (when calculating from peak to trough).
  3. Ascending Triangle

    A bullish chart pattern used in technical analysis that is easily recognizable by the distinct shape created by two trendlines. In an ascending triangle, one trendline is drawn horizontally at a level that has historically prevented the price from heading higher, while the second trendline connects a series of increasing troughs.
  4. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
  5. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  6. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
Trading Center