Mumbai Interbank Offered Rate (MIBOR)

The Mumbai Interbank Offered Rate (MIBOR) is the benchmark interest rate for short-term loans in the Indian rupee. It is calculated as the weighted average of the interest rates at which banks lend to each other in the interbank market. The MIBOR is used as a reference rate for a variety of financial products, including loans, bonds, and derivatives.

The MIBOR is published by the National Stock Exchange of India (NSE) on a daily basis. The NSE uses a panel of banks to collect the data for the MIBOR. The banks in the panel are required to submit their lending rates to the NSE on a daily basis. The NSE then calculates the MIBOR as the weighted average of the submitted rates.

The MIBOR is a floating rate, which means that it changes over time. The MIBOR is influenced by a number of factors, including the level of demand for loans in the interbank market, the level of supply of loans in the interbank market, and the prevailing interest rates in the economy.

The MIBOR is an important benchmark rate for the Indian financial market. It is used as a reference rate for a variety of financial products, and it influences the cost of borrowing for businesses and individuals. The MIBOR is also used by the Reserve Bank of India (RBI) to set the repo rate, which is the rate at which the RBI lends to banks.

The MIBOR is a relatively new benchmark rate. It was first introduced in 1998. Prior to the introduction of the MIBOR, the Indian financial market used the London Interbank Offered Rate (LIBOR) as its benchmark rate. However, the LIBOR was discontinued in 2018 due to a number of scandals. The MIBOR has since replaced the LIBOR as the benchmark rate for the Indian financial market.

The MIBOR is a reliable and transparent benchmark rate. It is calculated using a transparent methodology, and it is published on a daily basis. The MIBOR is also used by a number of international financial institutions, which makes it a globally recognized benchmark rate.

The MIBOR is an important benchmark rate for the Indian financial market. It is used as a reference rate for a variety of financial products, and it influences the cost of borrowing for businesses and individuals. The MIBOR is also used by the RBI to set the repo rate, which is the rate at which the RBI lends to banks.