LIBOR

The London InterBank Offered Rate, or LIBOR, is the annualized, average interest rate at which a select group of large, reputable banks that participate in the London interbank money market can borrow unsecured funds from other banks. There are many different LIBOR rates (maturities range from overnight to 12 months) for five currencies:

• CHF (Swiss Franc)

• EUR (Euro)

• GBP (Pound Sterling)

• JPY (Japanese Yen)

• USD (US Dollar)

Back in the mid-1980's, the world banking system adopted LIBOR as a much needed benchmark for short-term, interbank loans. LIBOR rates are now internationally recognized indexes used for pricing many types of consumer and corporate loans, debt instruments and debt securities across the globe. For example, LIBOR is used as an index for a large percentage of adjustable-rate mortgages (ARM) in The United States.

LIBOR rates are fixed every UK business day by the ICE Benchmark Administration (IBA).

The Fed Funds Target Rate, America's benchmark interest rate, and the U.S. Prime Rate are controlled by America's central bank: the U.S. Federal Reserve. LIBOR rates, however, are not controlled or regulated by England's central bank, or any other central bank for that matter. Scroll down this page to read about how LIBOR is fixed.

Current US Dollar LIBOR Rates§
Maturity	Rate (%)
1 Month LIBOR	2.40438
3 Month LIBOR	2.34925
6 Month LIBOR	2.22013
1 Year LIBOR	2.20213
The above-listed LIBOR rates are valid for June 21, 2019±.
The Current US Prime Rate	5.50%
The Current Target Range for the Fed Funds Rate	2.25% - 2.50%
Chart: U.S. Prime Rate vs. Fed Funds Target Rate vs. 1-Month LIBOR vs. 3-Month LIBOR
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How U.S. Dollar (Eurodollar) LIBOR Works How does the IBA fix LIBOR rates denominated in U.S. dollars? Just before 11:00 a.m. GMT, it polls a specific panel of highly reputable, high-volume banks which participate in the London wholesale money market. The IBA finds out the rate at which each bank on the panel could borrow Eurodollars from other banks, for specific maturities. The IBA figures out the trimmed arithmetic mean for each maturity, then publishes these rates at about 11:45 a.m. GMT. The American banks included in the panel surveyed by the IBA for U.S. dollar fixing are: Bank of America N.A.* JP Morgan Chase Bank N.A.* Citibank N.A.* There are 15 non-U.S. banks surveyed for U.S. dollar fixing in London. These banks are: Bank of Tokyo-Mitsubishi UFJ Ltd Barclays Bank plc BNP Paribas SA* Credit Agricole Corporate & Investment Bank Credit Suisse AG* Deutsche Bank AG* HSBC Bank plc Lloyds TSB Bank plc Rabobank Intl CCRB (Cooperatieve Centrale Raiffeisen - Boerenleenbank B.A) Royal Bank of Canada Société Générale* Sumitomo Mitsui Banking Corporation Europe Limited The Norinchukin Bank The Royal Bank of Scotland plc UBS AG * = London Branch A Eurodollar is a US dollar deposited in any bank outside the United States. For more on how LIBOR works, click here.
± = The table below lists Eurodollar bank holidays.
Eurodollar LIBOR Bank Holidays: 2019 New Year's Day January 1 Martin Luther King's Birthday § January 21 President's Day § February 18 Good Friday April 19 Easter Monday April 22 Early May UK Bank Holiday May 6 Spring Bank Holiday May 27 Independence Day § July 4 Summer Bank Holiday August 26 Labor Day § September 2 Columbus Day § October 14 Veteran's Day § November 11 Thanksgiving Day § November 28 Christmas Day December 25 Boxing Day December 26
§ = No overnight Eurodollar LIBOR fixing.
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