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.

RELATED TERMS
  1. Interbank Call Money Market

    An interbank call money market is a short-term money market which ...
  2. Interbank Market

    The financial system and trading of currencies among banks and ...
  3. Interbank Rate

    The rate of interest charged on short-term loans made between ...
  4. Reverse Floater

    A floating-rate note in which the coupon rises when the underlying ...
  5. Panel Bank

    The name given to the group of banks contributing to the Euro ...
  6. Stockholm Stock Exchange (STO) ...

    The main securities market in Sweden, the Stockholm Stock Exchange ...
Related Articles
  1. Investing

    The Top 3 ETFs For Investing in Sweden

    Discover a selection of popular exchange-traded funds, or ETFs, that offer investors the ability to access exposure to the Swedish equities market.
  2. Personal Finance

    Understanding Term Loans

    A loan from a bank for a specific amount that has a specified repayment schedule and a floating interest rate.
  3. Insights

    Top 5 Countries with the Most Twitter Followers

    Sweden's Twitter account @Sweden has more followers than @USA.
  4. Personal Finance

    How Banks Set Interest Rates on Your Loans

    Many factors go into how banks set interest rates for loans. Use this information to negotiate the best possible rate when you're borrowing.
  5. Insights

    Understanding the Bank Rate

    Bank rate is a term describing the interest rate a country’s central bank charges its domestic banks on loans it makes to them.
  6. Tech

    More Governments Test Out Cryptocurrencies

    Digital currencies may be enticing to governments if cash is in decline or financial networks are out of date.
  7. Personal Finance

    How Interest Rates Can Go Negative

    Central banks from Europe to Japan have implemented a negative interest rate policy (NIRP) in order to stimulate economic growth.
  8. Insights

    Who Uses Libor Data And Why?

    LIBOR is a crucial benchmark reference rate with global economic impact.
  9. Insights

    10 Countries With Lower Interest Rates Than the US

    Learn about the 10 countries with lower interest rates than the United States and how interest rates indicate a country's economic outlook.
  10. Insights

    What Is The Relationship Between The Federal Funds, Prime And LIBOR Rates?

    The prime rate and LIBOR rate, two of the most prominent benchmark rates, tend to track the federal funds rate closely over time. However, during periods of economic turmoil, LIBOR appears more ...
RELATED FAQS
  1. How does LIBOR compare to the Federal Reserve rate as an accurate indicator?

    Explore a comparison of the predictive efficacy of the Federal Reserve's fed funds rate and the Intercontinental Exchange's ... 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 >>
  3. How did the LIBOR scandal affect interest rate swaps?

    Find out how the LIBOR scandal directly enriched some interest rate swap traders and harmed others by understating the real ... Read Answer >>
  4. How is the forex spot rate calculated?

    The forex spot rate is determined by supply and demand. Banks all over the world are buying and selling different currencies ... Read Answer >>
Hot Definitions
  1. Exchange-Traded Fund (ETF)

    A security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange.
  2. Net Present Value - NPV

    Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows ...
  3. Return On Equity - ROE

    The amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability ...
  4. Bond

    A bond is a fixed income investment in which an investor loans money to an entity (corporate or governmental) that borrows ...
  5. Whole Life Insurance Policy

    A life insurance contract with level premiums that has both an insurance and an investment component. The insurance component ...
  6. Compound Annual Growth Rate - CAGR

    The Compound Annual Growth Rate (CAGR) is the mean annual growth rate of an investment over a specified period of time longer ...
Trading Center