Singapore Interbank Offered Rate (SIBOR)
The interest rate at which banks located in Asian time zones can borrow funds from other banks located in the region. In Asia, the SIBOR is used more commonly than the LIBOR. It is set daily by the Association of Banks in Singapore (ABS). More than anything else, the SIBOR serves as a benchmark, or reference rate for borrowers and lenders that are directly or indirectly involved in an Asian financial market. Investopedia Says:
Because of its location, political stability, strict legal and regulatory environment as well as the volume of business undertaken in Singapore, the city state is regarded as a major hub of Asian finance. Commonly, very large loans to businesses in the area and interest rate swaps involving businesses participating in the Asian economy will be quoted or denominated in SIBOR plus a number of basis points. Related Terms:
Asia Ex-Japan
Association of Southeast Asian Nations - ASEAN
Euro LIBOR
Hong Kong Interbank Offered Rate - HIBOR
London Interbank Offered Rate - LIBOR
Stockholm Interbank Offered Rate - STIBOR
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