The London Interbank Bid Rate (LIBID) is a bid rate; the rate bid by banks on

Eurocurrency Eurocurrency is currency held on deposit outside its home market, i.e., held in banks located outside of the country which issues the currency. For example, a deposit of US dollars held in a bank in London, would be considered eurocurrency, as the ...

deposits (i.e., the rate at which a bank is willing to borrow from other banks). It is the "other end" of the

LIBOR The London Inter-Bank Offered Rate is an interest-rate average calculated from estimates submitted by the leading banks in London. Each bank estimates what it would be charged were it to borrow from other banks. The resulting average rate is u ...

(an offered, hence "ask" rate, the rate at which a bank will lend). Whilst the

British Bankers' Association The British Bankers' Association (BBA) was a trade association for the UK banking and financial services sector. From 1 July 2017, it was merged into UK Finance. It represented members from a wide range of banking and financial services. The asso ...

set LIBOR rates, there is no correspondent official LIBID fixing.

Conventional wisdom The conventional wisdom or received opinion is the body of ideas or explanations generally accepted by the public and/or by experts in a field. In religion, this is known as orthodoxy. Etymology The term is often credited to the economist John K ...

used to assert that a LIBID rate could be calculated by subtracting a fixed amount (often given as ⅛th of 1%) from the prevailing BBA

rate, however this is no longer the case as bid–offer spreads have tightened in recent years. Additionally, it cannot be the case that the LIBOR/LIBID spread is always ⅛th of 1% for all maturities and all currencies all the time.

External links

British Bankers' Association Website
{{bank-stub Interest rates