The London Interbank Offered Rate. It is in the process of being wound-down. Historically, LIBOR was often used as a benchmark or reference rate for calculating interest. LIBOR was developed to facilitate syndicated loan transactions and increase pricing transparency. Although originally developed for the syndicated loan market, its use expanded and from the mid to late eighties it began to be used in huge volumes of derivatives transactions.

It was intended to reflect the average rate at which banks could obtain unsecured funding in the London Interbank Market for a particular currency and particular time period.

For more information, see Practice note, Interest rate benchmark reform: reform of existing rates: LIBOR.