Is Mibor is better than Libor rate. Please clarify?
LIBOR is London Inter Bank Offered Rate. MIBOR is Mumbai Inter Bank Offer Rate. LIBOR is a daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks in the London wholesale money market (or interbank market). This is generally the rate at which banks offer and take funds in London market from each other. MIBOR is a market for Indian banks and is based in Mumbai for the same purpose as LIBOR. For me, LIBOR will be reasonable rate as the market has depth. MIBOR doesn’t have the depth of LIBOR for sure.
