KIBOR, or Karachi Interbank Offered Rate, is the daily reference rate of interest in the financial market. It is used as a benchmark in lending to the corporate sector. It is determined by the interest rates that banks lend each other in the Karachi wholesale money market. This rate is important because it determines what banks are willing to lend to each other.
KIBOR is a daily reference rate
KIBOR, or the Karachi Interbank Offer Rate, is a benchmark interest rate used for lending in the Pakistani wholesale money market. It is used to promote transparency and consistency in lending and to manage market risk. KIBOR is an important metric because it helps banks to manage their cashflows.
In September 2001, KIBOR was introduced by the central bank in response to an industry-wide deterioration in the currency market. Since then, KIBOR has been an important benchmark for financial market participants in Pakistan. However, corporates have been reluctant to adopt it as a reference rate. While it is the banks’ responsibility to determine the KIBOR, the SBP does have a role in encouraging banks to use it.
It is a fund with no exposure to the stock market
The KIID (Key Investor Information Document) is a document that a fund management company must provide to its investors. The document contains key facts and figures about the investment fund. Generally, the KIID is less than 5 pages long. It lists investment fund characteristics and risks and offers a comparison of fund performances against the benchmark. For example, a fund that is below its benchmark’s beta will underperform compared to its peers. Moreover, it will lose more in down markets than in up ones.
