LIBOR stands for the London Interbank Offered Rate and is the rate of
interest at which banks borrow funds from other banks in the London
wholesale (or "interbank") money market.
The British Bankers Association (BBA) LIBOR rate is a widely used reference
rate for forward rate agreements, and interest rate swaps.
It is based on inter-bank deposit rates offered by designated contributor
banks. It is compiled by the BBA and released to the market at about 11:00 each day.
For a precise definition of BBA LIBOR, see the BBA website.