EIBOR (Emirates Interbank Offered Rate)
Benchmark interest rate in UAE for interbank lending.
Detailed Description
EIBOR (Emirates Interbank Offered Rate)
What is EIBOR?
EIBOR is the Emirates Interbank Offered Rate, a benchmark interest rate reflecting the average rate at which banks in the UAE lend to one another.
How is EIBOR calculated?
EIBOR is calculated based on submissions from a panel of banks, averaging their estimated borrowing costs while excluding the highest and lowest submissions.
Why is EIBOR important in financial markets?
EIBOR serves as a reference rate for loans and mortgages, impacting pricing and liquidity in the banking system.
Who regulates EIBOR?
EIBOR is primarily regulated by the UAE Central Bank, which oversees its calculation and publication to ensure transparency.
How does EIBOR compare to LIBOR and SOFR?
EIBOR is tailored for the UAE market and is an unsecured lending rate, while LIBOR has faced scrutiny and SOFR is based on secured overnight transactions.