LIBOR, or the London Interbank Offered Rate, is a benchmark interest rate that indicates the average rate at which major global banks lend to one another. It is calculated for different currencies and various loan durations, serving as a reference for many financial products, including mortgages and derivatives. In recent years, LIBOR has faced criticism and scrutiny due to manipulation scandals and declining usage. As a result, financial authorities have been transitioning to alternative rates, such as SOFR (Secured Overnight Financing Rate) in the United States, to provide a more reliable and transparent benchmark for borrowing costs.