London Inter-Bank Bid Rate meaning

In transactional practice, the London Inter‑Bank Bid Rate (LIBID) is the bid‑side interbank deposit rate in London: the rate at which major London banks are willing to accept wholesale deposits from other banks. It is a descriptive market term, historically used in loan, treasury and derivatives documentation (for example, in ISDA Credit Support Annexes to remunerate cash collateral), and commonly contrasted with LIBOR (the offered rate). LIBID is not defined in legislation or case law and, unlike LIBOR, was not administered as a standalone regulated benchmark. Following the LIBOR transition and UK/EU benchmark reforms, references to LIBID are largely obsolete. Contemporary drafting for sterling typically uses SONIA (or derived term rates), and for euro exposures in Ireland may use €STR or EURIBOR, in each case subject to the UK/EU Benchmarks Regulation. Where LIBID appears in legacy contracts across England & Wales, Scotland, Northern Ireland and Ireland, check the precise definition, any identified screen page or dealer‑polling methodology, and the agreement’s benchmark fallback or amendment mechanics. Usage and interpretation are broadly consistent across these jurisdictions.