DEFINITION of 'Stockholm Interbank Offered Rate - STIBOR'

The official interbank offer rate for short term loans in Sweden. The Stockholm Interbank Offer Rate is determined by the Riksbank, Sweden's central bank, and is often used for one or three month terms. STIBOR is the interest rate banks are charged when borrowing from other banks for maturities longer than overnight.

BREAKING DOWN 'Stockholm Interbank Offered Rate - STIBOR'

STIBOR is used in Sweden similar to how LIBOR is used in the United States and United Kingdom. It serves as a benchmark for many floating interest rate instruments. The rate is to be used for short term loans, which are less than one year in a maturity.

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RELATED FAQS
  1. What is the difference between LIBID and LIBOR?

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  2. What are the differences between the Federal Funds Rate and LIBOR?

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  3. How does LIBOR compare to the Federal Reserve rate as an accurate indicator?

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  4. How did LIBOR come into use?

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    Learn more about the prime rate and the discount rate and how the Federal Reserve uses these rates in the U.S. economy. Explore ... Read Answer >>
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