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What is London Interbank Offered Rate (LIBOR)?

The London Interbank Offered Rate (LIBOR) is a set of interest rates calculated from submissions by large global banks. LIBOR rates are supposed to represent the cost of borrowing among the banks. U.S. Dollar LIBOR is the most used reference rate to determine the interest rates in financial contracts, including consumer loans, such as adjustable-rate mortgages, reverse mortgages, home equity lines of credit (HELOCs), student loans, and credit cards.

Please note: The terms "bank" and "banks" used in these answers generally refer to national banks, federal savings associations, and federal branches or agencies of foreign banking organizations that are regulated by the Office of the Comptroller of the Currency (OCC). Find out if the OCC regulates your bank. Information provided on should not be construed as legal advice or a legal opinion of the OCC.

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