Definition:
“KIBOR is the average interest rate at which banks want to lend money to other banks”.
Purpose:
KIBOR as a benchmark, to encourage transparency, to promote consistency in market based pricing and improve management of the market risk undertaken by banks.
“KIBOR is the average interest rate at which banks want to lend money to other banks”.
Purpose:
KIBOR as a benchmark, to encourage transparency, to promote consistency in market based pricing and improve management of the market risk undertaken by banks.
The banks do lending and borrowing taking KIBOR as benchmark with additional margin on it, which depends on, The tenure of the deal, The liquidity level, The credit quality.
History:
It was formed in 1997,by Financial Markets Association of Pakistan (FMA), It is a Non-commercial, Non-profit, Self-financed and Professional Association of Dealers of Financial Instruments.
Factors linked with KIBOR,
. Interest rate
. Rate of Inflation
. Purchase Power
. Discount Rate
. Balance of Payments
. Rate of Inflation
. Purchase Power
. Discount Rate
. Balance of Payments
Benefits:Kibor futures will allow banks to perform their lending function efficiently by taking the burden of interest rate risk away from the corporate and industrial sector.
MAIN SERVICES AND PRODUCTS OF REUTERS IN:
.Exchange Traded Instruments
.Commodities & Energy
. Fixed Income
. Hedge Funds
. Risk Management
.Exchange Traded Instruments
.Commodities & Energy
. Fixed Income
. Hedge Funds
. Risk Management
