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.

  1. Interbank Deposits

    In an interbank deposit, one bank holds funds on behalf of another ...
  2. Eurocurrency

    A eurocurrency is a currency deposited by national governments ...
  3. LIBOR Curve

    The LIBOR curve is a graphical representation of various maturities ...
  4. Eurocurrency Market

    The eurocurrency market is the market, currency held in banks ...
  5. Interbank Market

    The interbank market is the global network used by financial ...
  6. Euro Feds

    Euro feds are interbank loans made in dollars between U.S. banks ...
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