DEFINITION of 'London Interbank Bid Rate - Libid'

Libid is the average interest rate at which major London banks bid for eurocurrency deposits from other banks. 

BREAKING DOWN 'London Interbank Bid Rate - Libid'

The London Interbank Bid Rate (Libid) is the other side of the more famous London Interbank Offered Rate (Libor). Whereas Libor is the "ask" rate at which a bank is willing to lend eurocurrency deposits to another bank, Libid is the "bid" rate at which banks are willing to borrow. The difference between the two is the bid-ask spread on these transactions.

While Libor is a popular benchmark interest rate that is calculated and published by Intercontinental Exchange (ICE), Libid is not standardized or publicly available. It is not used outside of the interbank lending market. "Limean" refers to the average of Libor and Libid.

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RELATED FAQS
  1. 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 >>
  2. Where on the internet can I find LIBOR rate information?

    Learn what the LIBOR is, which website provides general LIBOR information and which website provides ICE LIBOR data going ... Read Answer >>
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    Learn about the significance of the London Interbank Offered Rate, or LIBOR, and the history of how the daily LIBOR became ... Read Answer >>
  4. How is Libor determined?

    Libor is the major rate used to price debt stock. Libor is actually a set of several benchmarks that reflect the average ... Read Answer >>
  5. How were bonds and derivatives manipulated in the LIBOR scandal of 2012?

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    When looking at stock quotes, there are numbers following the bid and ask prices for a particular stock. These numbers usually ... Read Answer >>
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