Our Recommendations :-
Follow CA Final FB Page

How is Libor different from Mibor? And why is Mibor still not considered mature enough?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Pinky asked about 3 years ago

How is Libor different from Mibor? And why is Mibor still not considered mature enough?

    0       0 Answer Now Comment Report
1 Answers
Important Note – Preparing for CA Final?
CAKART provides Indias top faculty each subject video classes and lectures – online & in Pen Drive/ DVD – at very cost effective rates. Get video classes from CAKART.in. Quality is much better than local tuition, so results are much better.
Watch Sample Video Now by clicking on the link(s) below – 
For any questions Request A Call Back  
Open uri20170510 32134 1uwcnoc?1494421631 Shubhangi Jain answered almost 3 years ago

**LIBOR** is the London Interbank Offer Rate. It's a rate at which banks in London are willing to lend to each other. The ICE (Intercontinental Exchange Benchmark Administration) currently calculates LIBOR every day using this methodology: Every contributor bank is asked to base their ICE LIBOR submissions on the following question: “At what rate could you borrow funds, were you to do so by asking for and then accepting interbank offers in a reasonable market size just prior to 11 am London time?” Every ICE LIBOR rate is calculated using a trimmed arithmetic mean. Once each submission is received, they are ranked in descending order and then the highest and lowest 25% of submissions are excluded. This trimming of the top and bottom quartiles allows for the exclusion of outliers from the final calculation LIBOR is calculated for five currencies- CHF, EUR, GBP, JPY, and USD. It is also calculated for seven maturities. Oh and fun fact- LIBOR used to be administered by the British Bankers' Association (BBA), but after it turned out banks had been lying about their rates there was a big Libor scandal and the BBA handed administration of LIBOR over to ICE. **MIBOR** is the Mumbai Interbank Offered Rate. It's a similar thing but it is calculated for banks in India in Rupees. So it's a different set of counterparties lending a different currency to each other. As for the second part of the question about it not being considered "mature" enough, I have trouble answering without more context on what is being asked.

    0       0 Comment Report
Get Notifications
Watch best faculty demo video classes

These top faculty video lectures will
help u prepare like nothing else can.