LIBOR:

London InterBank Offered Rate (LIBOR) is the interest rate required by large international banks when they are willing to lend money to other large international banks. It is the interest rate involved when commercial banks on the London interbank market trade U.S. dollars deposited with non-U.S. banks. LIBOR is often used as the benchmark for interest rates on commercial loans, mortgages, and debt issuances. At the same time, the interest rate of long-term floating rate loans will also be determined on the basis of LIBOR. LIBOR is also the reference interest rate for many contracts.