KIBOR
{{Short description|Pakistani Reference Rate}}
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.{{Cite web|url=https://dailytimes.com.pk/48719/sbp-exempts-islamic-banks-from-using-kibor/|title=SBP exempts Islamic banks from using KIBOR|date=November 1, 2016}} The banks used it as a benchmark in their lending to corporate sector.{{Cite web|url=https://www.sbp.org.pk/m_policy/mp-learn-2.asp|title=State Bank of |website=www.sbp.org.pk}}
It is also known as the benchmark rate and is published by Financial Market Association of Pakistan.
History
Karachi Interbank Offered Rate (KIBOR) was first introduced in September 2001.{{Cite web|url=https://www.dawn.com/news/348726/banks-to-use-kibor-as-benchmark-from-feb-1-corporate-lending|title=Banks to use KIBOR as benchmark from Feb 1: Corporate lending|date=January 22, 2004|website=DAWN.COM}}{{Cite web|url=https://www.dawn.com/news/349988/corporate-lending-kibor-made-benchmark|title=Corporate lending: KIBOR made benchmark|date=February 2, 2004|website=DAWN.COM}}
In February 2004, KIBOR became the benchmark rate for corporate lending in Pakistan.
Process
It is quoted daily by participating banks on Reuters at 11:30 am.{{cite web | url=https://www.sbp.org.pk/m_policy/mp-learn-3.asp | title=State Bank of Pakistan }} With 20 member banks, KIBOR rates are calculated by averaging the middle twelve rates, excluding the four highest and four lowest quotes.
Tenors
- 1 week{{Cite web|url=https://www.brecorder.com/news/40169579|title=6-month KIBOR has hit a 13-year high at 14.1%. Here is what this means|first=Bilal|last=Memon|date=April 26, 2022|website=Brecorder}}
- 2 weeks
- 1 month
- 3 months
- 6 months
- 9 months
- 1 year
See also
Notes
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{{Banking in Pakistan}}
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