Académique Documents
Professionnel Documents
Culture Documents
To encourage transparency
banks.
No Security problems
True picture of profit margin
SBP website
FMA website
Reuters/Bloomberg
Reuters is an international news agency which is also a
provider of financial market data. It has built a reputation
in Europe and the rest of the world as the first to report
news scoops from abroad.
3. Customer
Cost On deposits
Rate decision is of
customer
If the buyers are not
willing to pay the price
(interest) the merchant
(banks) has to readjust
the price to sell (loans).
If the rate for a tenor is not acceptable for any of
the two parties (bank or customer) or both, they
can change the tenor of transaction and agree on a
tenor for which KIBOR is suitable for them.
Factorz link with kibor
Commercial Papers
Overdrafts/Running Finance
Export finance scheme
These are:
50 basis point for 1,week, 2 week and 1 month
25 basis point for 3 months and 6 months
50 basis point for 9 months,1 year,2 year and 3 years
Interest rate for overnight lending and borrowing
Timings
“KONIA” rate will be update on Reuters by 12:30 pm from Monday -
Thursday
On Friday & Saturday, it will be updated at 12:05pm.
Islamic
Profit base Conventional
Use as Interest Base
Benchmark for
Profit vs. Use as
Benchmark for
IBOR ( Islamic Profit
Inter-Bank Offer KIBOR
Rate)
In Islamic Banking, KIBOR is just used
as benchmark for profit. It decides how
the profit should be distributed to
maintain standardization in market.
2. There is separate discussion on IBOR
(Islamic Inter-bank Offer rate ), for
Islamic banking which will soon be
implemented.