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Inter-bank market

The money market in which banks borrow or lend among themselves for fixed periods either to accommodate short-term liquidity problems or for on-lending. The interest rate at which funds on loan are offered to first-class banks is called the Inter-Bank Offered Rate (l.B.O.R.) or, in London, the London Inter-Bank Offered Rate (L.I.B.O.R.). The corresponding rate for deposits is known as the Inter-Bank Market Bid Rate (I.B.B.R.).

Reference: The Penguin Dictionary of Economics, 3rd edt.