TIBOR

AAA

DEFINITION of 'TIBOR'

Acronym for the "Tokyo Interbank Offered Rate." The Japanese Bankers Association (JBA) publishes the TIBOR every business day at 11:00am (Japan Standard Time).
There are two types of TIBOR rates – the European TIBOR rate and the Japanese Yen TIBOR rate. The European TIBOR rate is based on Japan offshore market rates. The Japan offshore market was created in 1986 to help internationalize the country's financial markets. Yen traded in the offshore market is termed "euroyen." The Japanese Yen TIBOR rate is based on unsecured call market rates. The call market provides a place for financial institutions to lend to, or borrow from, other banks and lenders to either adjust an unexpected short-term surplus or make up an unexpected deficit.

INVESTOPEDIA EXPLAINS 'TIBOR'

The Ministry of Finance is the most powerful finance-related government agency in Japan. The ministry's responsibilities include all of those that are individually held by the U.S. Department of Treasury, the IRS, the Federal Reserve, the Department of Commerce and the Securities and Exchange Commission.

RELATED TERMS
  1. JPY (Japanese Yen)

    The currency abbreviation or the currency symbol for the Japanese ...
  2. International Banking Facility ...

    A facility that allows depository institutions in the United ...
  3. Offshore Mutual Fund

    A mutual fund that is based in an offshore jurisdiction, which ...
  4. Euroyen

    Japanese yen-denominated deposits held in banks outside Japan. ...
  5. Keiretsu

    A Japanese term describing a loose conglomeration of firms sharing ...
  6. Offshore

    1. Located or based outside of one's national boundaries. The ...
RELATED FAQS
  1. How were bonds and derivatives manipulated in the LIBOR scandal of 2012?

    The LIBOR scandal was the systemic rigging of the overnight rates reported by banks to increase the value of bonds and derivatives ... Read Full Answer >>
  2. How is the risk-free rate of interest used to calculate other types of interest rates ...

    The risk-free rate for bonds is used for pricing the yield spread as the difference between the interest rate on a bond and ... Read Full Answer >>
  3. What does 'Incoterms' mean in relation to Ex Works (EXW) trades?

    Ex works is part of the published Incoterms and outlines the obligations of transportation to buyers and sellers. The International ... Read Full Answer >>
  4. How do interest rates impact risk aversion in the market?

    Interest rates entice savers and lenders to assume risk, allocate resources across time and affect the cost of entrepreneurial ... Read Full Answer >>
  5. What developed countries have the greatest exposure to the automotive sector?

    The developed countries with the greatest exposure to the automotive sector are Japan and Germany. This is based on exposure ... Read Full Answer >>
  6. What are the differences between Ex Works (EXW) and Free On Board (FOB)?

    Ex Works (EXW) and Free on Board (FOB) are Incoterms used to describe situations where sellers deliver goods. Ex Works describes ... Read Full Answer >>
Related Articles
  1. Forex Education

    Top 8 Most Tradable Currencies

    Currencies can provide diversification for a portfolio that's in a rut. Find out which ones you need to know.
  2. Forex Education

    Get To Know The Major Central Banks

    The policies of these banks affect the currency market like nothing else. See what makes them tick.
  3. Bonds & Fixed Income

    Dragons, Samurai Warriors And Sushi On Wall Street

    From samurai to sushi, there's no denying the East Asian influence on investing terminology.
  4. Insurance

    Understanding Japanese Keiretsu

    The structure of major companies in Japan is steeped in tradition and relationships.
  5. Personal Finance

    The Lost Decade: Lessons From Japan's Real Estate Crisis

    Find out what America can learn from Japan's liquidity trap and credit crunch.
  6. Investing

    Three Portfolio Moves To Consider Now

    What portfolio moves should you consider making as the 2nd quarter kicks off? Before we focus on the future, let’s first reflect on the 1st Q surprises.
  7. Investing

    Pockets Of Value In The Stock Market

    U.S. stocks benefited from signs the Fed’s path toward higher interest rates, as well as from continued merger-and-acquisition activity on of low rates.
  8. Economics

    When To Expect Fed Liftoff Now

    “When will the Fed raise interest rates?” That has been the question of many investors since the Fed indicated it was prepared to end its zero rate policy.
  9. Investing News

    A New Corporate Governance Initiative In Japan

    Expectations are low that Japan can create a corporate governance climate that meets global standards, but a new initiative is aimed at doing just that.
  10. Economics

    Can The U.S Close Its Trade Deficit?

    The stronger dollar could have increased the U.S. trade deficit. Instead, economic growth issues abroad and falling oil prices have helped shrink it.

You May Also Like

Hot Definitions
  1. Wash Trading

    The process of buying shares of a company through one broker while selling shares through a different broker. Wash trading ...
  2. Fixed-Income Arbitrage

    An investment strategy that attempts to profit from arbitrage opportunities in interest rate securities. When using a fixed-income ...
  3. Venture-Capital-Backed IPO

    The selling to the public of shares in a company that has previously been funded primarily by private investors. The alternative ...
  4. Merger Arbitrage

    A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless ...
  5. Market Failure

    An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers ...
  6. Unsystematic Risk

    Company or industry specific risk that is inherent in each investment. The amount of unsystematic risk can be reduced through ...
Trading Center