LIBID meaning

LIBID (London Interbank Bid Rate) is the interest rate at which banks in the London interbank market are willing to borrow funds—i.e. the bid rate at which they seek to take deposits from other institutions. It is a descriptive market term rather than a rate defined in legislation or case law, and it has never been an administered benchmark. Historically, LIBID was used alongside LIBOR as the bid/offer pair for wholesale deposits; practitioners sometimes treated LIBID as approximating LIBOR minus a small spread. Unlike LIBOR, LIBID was not robustly published and had no official administrator or screen rate. Its use in loan agreements, treasury deposit documentation and other finance contracts was therefore largely conventional and dependent on dealer quotations. Following the cessation of most LIBOR settings and the transition to near risk‑free rates (for sterling, SONIA), LIBID has largely fallen out of market use. Where legacy contracts governed by the laws of England and Wales, Scotland, Northern Ireland or Ireland still reference LIBID, parties typically rely on contractual fallbacks, amendment mechanics, or transition to alternative reference rates. Usage and interpretation are broadly consistent across these jurisdictions, but the absence of an official publication may require evidence of prevailing interbank bid rates at...