{"id":523,"date":"2023-05-16T08:02:28","date_gmt":"2023-05-16T08:02:28","guid":{"rendered":"https:\/\/spacemen.digital\/test\/?p=92"},"modified":"2023-05-16T08:02:28","modified_gmt":"2023-05-16T08:02:28","slug":"singapore-interbank-offer-rate-sibor","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/glossary\/singapore-interbank-offer-rate-sibor\/","title":{"rendered":"Singapore Interbank Offer Rate (SIBOR)"},"content":{"rendered":"\n

What is the Singapore Interbank Offer Rate (SIBOR)?<\/strong><\/h2>\n\n\n\n

Singapore Interbank Offer Rate, or SIBOR, is the estimated amount a bank predicts it will need to pay to borrow Singapore dollars from another bank. This estimation is determined by a panel of contributor banks through daily submissions. <\/p>\n\n\n\n

Soon, Swap Offer Rate (SOR) and SIBOR will no longer be used because financial markets worldwide are shifting to interest rate benchmarks that use real transaction data to calculate them.<\/p>\n\n\n\n

The 6-month SIBOR has already been phased down since March 31, 2022, while the commonly used 1-month and 3-month SIBOR will be discontinued right after December 31, 2024. <\/p>\n\n\n\n

As a result, SORA (Singapore Overnight Rate Average) will replace SOR and SIBOR as a new benchmark.<\/p>\n\n\n\n

Recommended article: 9 things about SORA for home loan interest rates (before it replaces SOR and SIBOR)<\/a><\/p>\n\n\n\n

How is SIBOR calculated?<\/strong><\/h2>\n\n\n\n

The Association of Banks in Singapore (ABS) determines SIBOR daily by collecting interest rate data from its 20 member banks. <\/p>\n\n\n\n

To calculate the SIBOR, at least 12 member banks must submit their daily interest rates. If more than 12 member banks submit their rates, the top and bottom 25% are discarded to derive an average SIBOR. <\/p>\n\n\n\n

If fewer than 12 banks report their rates, no SIBOR is calculated for that day.<\/p>\n\n\n\n

What influences the SIBOR?<\/strong><\/h2>\n\n\n\n

The following factors can affect the SIBOR:<\/p>\n\n\n\n