The London Interbank Offered Rate, or LIBOR, is a benchmark interest rate that indicates the average rate at which major global banks lend to one another in the London interbank market. It is calculated for different currencies and various loan durations, ranging from overnight to one year. LIBOR serves as a reference rate for many financial products, including loans, mortgages, and derivatives. LIBOR is determined daily based on submissions from a panel of banks, which report the rates at which they believe they could borrow funds. This rate is crucial for financial markets, as it influences borrowing costs and investment returns worldwide.