The BBA is the voice of the banking industry for all banks who operate within the uk
Key facts about BBA LIBOR
10/08/2007
As economists scour the markets for signs of a credit crunch, attention is turning to BBA LIBOR as one of the key indicators of what the market is thinking. The BBA has therefore put together this short briefing note for journalists.
1. What is BBA LIBOR?
The British Bankers' Association London Interbank Offered Rate closely reflects the real rates of interest being used by the world’s big financial institutions.
Central banks (such as the Bank of England, the US Federal Reserve and the European Central Bank) may fix official base rates monthly, but BBA LIBOR reflects the actual rate at which banks borrow money from each other.
BBA LIBOR figures are issued daily on more than 300,000 screens around the world. Rates are quoted for a range of borrowing periods, ranging from overnight loans to 12 months, and a range of world currencies.
2. Why is it in the news?
Because BBA LIBOR rates are calculated daily from the rates at which banks agree to lend each other money, it is a more accurate barometer of how global markets are reacting to market conditions. Recently the overnight borrowing rate has been moving dramatically.
For further information, please contact:
Press Office (020 7216 8989 )
Out of hours contact (020 7216 8888 )
Notes to Editors:
The full name of this service is BBA LIBOR. The term LIBOR has been used erroneously to describe this industry standard, but as individual banks may calculate their own Libor rates, the term BBA LIBOR should be used to distinguish them.
Daily BBA LIBOR rates are published by Reuters and are available also through Thomson Financial, Telekurs, Blomberg, Infotec, IDC, Quick, Class Editori and Proquote, as well as other information providers.
Historic BBA LIBOR rates are available from this BBA website – see the link below.
Related Links
Historic BBA LIBOR rates
(Internal Link)
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