Interbank Offered Rate
/ˌɪntərˌbæŋk əˈfɜrdɪd reɪt/
Definitions
- (n.) A reference interest rate at which major banks lend unsecured funds to each other in the interbank market, often used as a benchmark in loan and derivative contracts.
The loan's interest was tied to the interbank offered rate to reflect market fluctuations.
Forms
- interbank offered rate
Related terms
See also
Commentary
Typically capitalized in contracts; clarity in definition is essential due to its widespread use as a financial benchmark influencing legal obligations in loan and derivative agreements.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.