Hi. The base rate (or "bank rate") is set by the Bank of England - the UK central bank. The interbank rate - LIBOR - is set by the commercial banks themselves. That's why when liquidity suddenly dries up and banks won't lend to each other you can get a gap opening up between the two rates. Your mortgage and any loans you take out are more likely to be tied to the interbank rate, which is influenced by, but not determined by, the base rate. Make sense? Cheers Tim.
While this might have been an obscure acronym that few people had ever heard about, the effects of this scandal have affected a large number of people across the world.
hi tim, may i know what is the difference between inter bank interest and base rate that you talk about in the video? Since both of them influence us(or the economy), what is their relationship?
Something is missing in your explanation. Rates affects both lenders and borrowers, so there must be equilibrium between lenders and borrowers. If we the let the market to work on its own, the market can go crazy some times and at times being manipulated by the rich. So, some form of control could be a good thing when it is managed properly.
cfcreative1 I would love to leave barclays. Do you recommend an alternative one. I have always the feeling they are all same shit. Banking is a dishonest scheme accepted by the society. They did clever marketing and let the humankind believe in the system.
enjoyed the video as I'm trying to wrap my head around what this whole LIBOR scandal is. Thank you. But fyi, there is no other video in your collection titled "What is LIBOR?"
Nobody cared? Speak for yourself. Every highschooler in Brasil in the late 80s had to learn about the infamous Libor rate as our government renegotiated our foreign debt with Paris Club based on the Libor.
"Interbank" rate = ONE (1) BANK = CENTRAL BANK It doesn't matter who does what, when, where, or even how. At least not when you know it's all the same players. Btw, we use certain words for a reason, and it's very striking to me that this OP didn't mention any of these FACTS. 🧐
Own words a libor cheater: “Well look, I mean, it’s a dishonest scheme, isn’t it?” Hayes said. “And I was part of the dishonest scheme, so obviously I was being dishonest.”
Hi. The base rate (or "bank rate") is set by the Bank of England - the UK central bank. The interbank rate - LIBOR - is set by the commercial banks themselves. That's why when liquidity suddenly dries up and banks won't lend to each other you can get a gap opening up between the two rates. Your mortgage and any loans you take out are more likely to be tied to the interbank rate, which is influenced by, but not determined by, the base rate. Make sense? Cheers Tim.
Your videos are extremely helpful. Thanks!
Thank you. A great video. It helped me with studies
I was looking for a concise video that would explain this. :) Glad this was created.
While this might have been an obscure acronym that few people had ever heard about, the effects of this scandal have affected a large number of people across the world.
hi tim, may i know what is the difference between inter bank interest and base rate that you talk about in the video? Since both of them influence us(or the economy), what is their relationship?
great video - thanks!
Excellent video, high quality stuff ❤
wow I have seen this term on a holding company in the US, in the financial notes very interesting thank you
Great explanation.
great explanation
Thank you!
Really enjoy the tutorials. What is your policy on sharing? Would love to upload them to my new app for law students?
Only for economics students
What is a russianologopoly? 10:36
Something is missing in your explanation. Rates affects both lenders and borrowers, so there must be equilibrium between lenders and borrowers.
If we the let the market to work on its own, the market can go crazy some times and at times being manipulated by the rich. So, some form of control could be a good thing when it is managed properly.
the video is so good
Thanks man
I have heard so much bad stuff about Barclays I am surprised that anyone still deals with them voluntarily.
cfcreative1 I would love to leave barclays. Do you recommend an alternative one. I have always the feeling they are all same shit. Banking is a dishonest scheme accepted by the society. They did clever marketing and let the humankind believe in the system.
I am in Canada but maybe try an international bank.
enjoyed the video as I'm trying to wrap my head around what this whole LIBOR scandal is. Thank you. But fyi, there is no other video in your collection titled "What is LIBOR?"
This is the one - ruclips.net/video/n-rRurPvFZ0/видео.html
Lost everything due to it..can I sue the company that set it and took everything to the point of repossession???
Nobody cared? Speak for yourself. Every highschooler in Brasil in the late 80s had to learn about the infamous Libor rate as our government renegotiated our foreign debt with Paris Club based on the Libor.
dont forget the guy in connecticut whose father is a GE executive
Was looking for this comment your woke
we ain't forgot
Tell me more John Oliver!
"Interbank" rate = ONE (1) BANK = CENTRAL BANK
It doesn't matter who does what, when, where, or even how. At least not when you know it's all the same players.
Btw, we use certain words for a reason, and it's very striking to me that this OP didn't mention any of these FACTS. 🧐
Very useful! If you could speak more clearly it would be great!
what happened finally?
Just in case anyone is curious and to provide an update. Still ongoing in the US in terms of investigation by FDIC. Yeah, the swift hands of justice.
Has there ever been any resolve? haha
Own words a libor cheater: “Well look, I mean, it’s a dishonest scheme, isn’t it?” Hayes said. “And I was part of the dishonest scheme, so obviously I was being dishonest.”
cover up the failure.