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. The banks used it as a benchmark in their lending to corporate sector.
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.
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. 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
- 2 weeks
- 1 month
- 3 months
- 6 months
- 9 months
- 1 year
See also
Notes
- "SBP exempts Islamic banks from using KIBOR". November 1, 2016.
- ^ "State Bank of". www.sbp.org.pk.
- ^ "Banks to use KIBOR as benchmark from Feb 1: Corporate lending". DAWN.COM. January 22, 2004.
- ^ "Corporate lending: KIBOR made benchmark". DAWN.COM. February 2, 2004.
- ^ "State Bank of Pakistan".
- ^ Memon, Bilal (April 26, 2022). "6-month KIBOR has hit a 13-year high at 14.1%. Here is what this means". Brecorder.
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