Interest Rate Benchmark
/ˈɪn.tər.ɪst reɪt ˈbɛn.tʃmɑːrk/
Definitions
- (n.) A standardized reference interest rate used as a basis for calculating payments in financial contracts and instruments.
The loan's interest payments are determined according to the interest rate benchmark set by the central bank.
- (n.) An index or rate used in contracts to replace a variable rate, ensuring uniformity and transparency in calculating interest.
The contract stipulates that the interest rate benchmark shall be the LIBOR rate.
Forms
- interest rate benchmark
- interest rate benchmarks
Related terms
See also
Commentary
Interest rate benchmarks must comply with regulatory standards to ensure integrity and reduce manipulation risks in financial markets.
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.