KIBOR explained

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.^[1] The banks used it as a benchmark in their lending to corporate sector.^[2]

It is also known as the benchmark rate and is published by Financial Market Association of Pakistan.^[2]

Process

It is quoted daily by participating banks on Reuters at 11:30 am.^[3] With 20 member banks, KIBOR rates are calculated by averaging the middle twelve rates, excluding the four highest and four lowest quotes.^[4]

Tenors

• 1 week^[5]
• 2 weeks^[5]
• 1 month^[5]
• 3 months^[5]
• 6 months^[5]
• 9 months^[5]
• 1 year^[5]

See also

• LIBOR
• Euribor
• Leverage (finance)
• Margin (finance)

Notes and References

1. Web site: SBP exempts Islamic banks from using KIBOR. November 1, 2016.
2. Web site: State Bank of Pakistan. www.sbp.org.pk.
3. Web site: State Bank of Pakistan .
4. Web site: State Bank of Pakistan .
5. Web site: 6-month KIBOR has hit a 13-year high at 14.1%. Here is what this means. Bilal. Memon. April 26, 2022. Brecorder.