London Interbank Offered Rate (LIBOR) is a reference interest rate published by the British Bankers' Association (BBA). The BBA surveys a panel of major banks daily and asks each bank to provide the interest rate at which it believes it could borrow funds unsecured in a particular currency and for a particular maturity in the wholesale money market in London. The published rate is a trimmed average of the rates obtained in the survey.
Libor rates are calculated for five currencies and seven borrowing periods ranging from overnight to one year. It is published daily by Thomson Reuters.
U.S. Dollar LIBOR is the most used reference rate to determine the interest rates in financial contracts, including consumer loans, such as adjustable-rate mortgages, reverse mortgages, home equity lines of credit (HELOCs), student loans, and credit cards.