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    LIBOR stands for London Interbank Offered Rate and was created in the 1980s by the British Bankers' Association as a benchmark for interest rates between banks. It represents the average rate that banks in London charge when borrowing from other banks, and is used as a reference rate for trillions of dollars' worth of financial products and loans worldwide. LIBOR is published each day for various loan periods ranging from overnight to one year across different currencies, most commonly US dollars, British pounds, and Japanese yen.

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    sbr1 DM

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    LIBOR stands for London Interbank Offered Rate and was created in the 1980s by the British Bankers' Association as a benchmark for interest rates between banks. It represents the average rate that banks in London charge when borrowing from other banks, and is used as a reference rate for trillions of dollars' worth of financial products and loans worldwide. LIBOR is published each day for various loan periods ranging from overnight to one year across different currencies, most commonly US dollars, British pounds, and Japanese yen.

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    LIBOR stands for London Interbank Offered Rate and was created in the 1980s by the British Bankers' Association as a benchmark for interest rates between banks. It represents the average rate that banks in London charge when borrowing from other banks, and is used as a reference rate for trillions of dollars' worth of financial products and loans worldwide. LIBOR is published each day for various loan periods ranging from overnight to one year across different currencies, most commonly US dollars, British pounds, and Japanese yen.

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    21 views3 pages

    sbr1 DM

    Uploaded by

    Abhi
    LIBOR stands for London Interbank Offered Rate and was created in the 1980s by the British Bankers' Association as a benchmark for interest rates between banks. It represents the average rate that banks in London charge when borrowing from other banks, and is used as a reference rate for trillions of dollars' worth of financial products and loans worldwide. LIBOR is published each day for various loan periods ranging from overnight to one year across different currencies, most commonly US dollars, British pounds, and Japanese yen.

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    LIBOR

    Creation :

     Created in 1980s by BBA , as banks calls for a reliable source to set interest rate for
    derivatives

     1st Libor rate was announced in 1986 for 3 currencies – US $ , British Sterling , Japan Yen

    Whatis it :

    LIBOR stands for London Inter Bank Offered Rate .It serves as a benchmark that gives the
    indication of the rate at which banks can borrow from London Interbank market for a given
    period of time

     The interbank borrowing is undertaken by financial institution either to make profits or


    to cover short term liquidity shortfalls

     Basically, it represents a cost of funds – an average of what the banks believe they have
    to pay to borrow a reasonable amount for a specific short period.

    Usage :

     Currently servers as a benchmark rates for millions of contract worth billion of dollars
    all around the world everyday

     Used as a base rate in professional financial market covering the financial products like
    options, swap &future.

     TOO used by Banks as the base rates while setting up the interests rates for savings ,
    loans and mortgages .

    Example

    Suppose an Indian company CBB wants to borrow money from the international market
    The lender will charge LIBOR+ X% , depending on the risk profile of the company CBB and the
    country where X will be the Risk Premium .

    1. SBR 2 – SCM IT
    Make use of the balanced scorecard/ KPI in place to understand the gap

    Constant Review Meeting / Informal discussion with team members

    Delegate authority to the next level personnel

    Feedback mechanism to know what is going wrong

    Include 3rd party vendors

    Strong Contingency Plan in place

    Identify the resource not adhering to the process and put them into improvement program

    Succession Planning – If PM goes on leave then someone to look after

    2.

    3. Early Training Programs – The training for the new ERP system would be started well enough
    in parallel with the UAT, as starting the Training at the time of GO Live will extend the timing
    for the usage and hence the implementation

    Mark the Customization Level – Customization in an ERP system should be done till some
    level. Much more customization into a ERP system will lead to integration problems with
    other systems.

    Reduced Reliability on Vendor (Oracle ) – There should be a collaboration among the


    vendor the company , so that the decisions that are taken should be mutual and both the
    parties should understand what is going on with the system .

    Sound In house Technical Expertise – Omantel did not had inhouse technical expertise ,
    which stopped them to have a edge over Oracle and cleary understand the technical
    requirements that are needed for them .

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