Business

Libor – what is it and why does it matter?

  • 18 December 2012
  • From the section Business

Libor, the London inter-bank lending rate, is considered to be one of the most important interest rates in finance, upon which trillions of financial contracts rest, and the exposure of its rigging has shocked many beyond the world of finance. Here, the BBC explains some of the key facts.

Note: The estimated figure for the value of transactions connected to Libor has been revised down from $800 trillion following new figures in the Wheatley report on 28 September 2012.