A five-year Libor rate chart includes information about average interest rates as charged by major banks located in London. The five-year chart takes into account time, maturity and currency rates.Continue Reading
Libor is an acronym that stands for London Inter-Bank Offered Rate. The Libor is used as a means of determining the interest rate that banks charge one another when they borrow money from each other.
The Libor is calculated using a variety of currencies, so foreign exchange rates play a critical part in Libor calculations. Libor's are calculated around the first of each month, and charts are mapped for every week, month, five months, year and five years.
Prior to 2007, the Libor rate that banks used was based on Fannie Mae's calculations. The Great Recession and Fannie Mae's subsequent legal and financial troubles led to the discontinuation of the Libor rate that bank used. As of 2015, the Libor rate is calculated using a replacement rate similar to that employed by the Wall Street Journal.
Financial regulation and changes in banking legislation enacted by the British Parliament shape the Libor rate in numerous ways. Laws such as the Financial Services Act played a key part in shaping oversight of the rate.Learn more about Banks