Hong Kong Interbank Offer Rate - HIBOR
The annual interest rate in Hong Kong dollars on lendings and borrowings made between banks in the interbank market. The terms of the deposits vary from overnight to one year. The UK version, the London Interbank Offer Rate (LIBOR), is similar to the HIBOR.
Investopedia Commentary
The interbank market is the market used by banks to transfer funds and currency to manage liquidity issues faced by banks. If a bank is nearing a point where withdrawals from the bank are depleting short-term cash reserves, that bank will go into the Hong Kong Interbank market and borrow money at the HIBOR.
Related Links
Forces Behind Interest Rates
See also: Bank Rate, Euro Interbank Offer Rate - EURIBOR, Liquidity, London Interbank Offer Rate - LIBOR, Money Market, Overnight Rate