The Karachi Interbank Offered Rate (KIBOR) is a daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks in the Karachi wholesale (or "interbank") money market.[1] The banks used it as a benchmark in their lending to corporate sector.[2]
It is also known as the benchmark rate and is published by Financial Market Association of Pakistan.[2]
History
editKarachi Interbank Offered Rate (KIBOR) was first introduced in September 2001.[3][4]
In February 2004, KIBOR became the benchmark rate for corporate lending in Pakistan.[3][4]
Process
editIt is quoted daily by participating banks on Reuters at 11:30 am.[5] With 20 member banks, KIBOR rates are calculated by averaging the middle twelve rates, excluding the four highest and four lowest quotes.[5]
Tenors
editSee also
editNotes
edit- ^ "SBP exempts Islamic banks from using KIBOR". November 1, 2016.
- ^ a b "State Bank of". www.sbp.org.pk.
- ^ a b "Banks to use KIBOR as benchmark from Feb 1: Corporate lending". DAWN.COM. January 22, 2004.
- ^ a b "Corporate lending: KIBOR made benchmark". DAWN.COM. February 2, 2004.
- ^ a b "State Bank of Pakistan".
- ^ a b c d e f g Memon, Bilal (April 26, 2022). "6-month KIBOR has hit a 13-year high at 14.1%. Here is what this means". Brecorder.
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