SIBOR

SIBOR stands for Singapore Interbank Offered Rate[1] and is a daily reference rate based on the interest
rates at which banks offer to lend unsecured funds to other banks in the Singapore wholesale money market
(or interbank market). It is similar to the widely used LIBOR (London Interbank Offered Rate), and
Euribor (Euro Interbank Offered Rate). Using SIBOR is more common in the Asian region and set by the
Association of Banks in Singapore (ABS).

SIBOR comes in 1-, 3-, 6- , or 12-month tenure. At the end of the tenure, the borrowing bank returns the
borrowed fund to the lending bank. The 3-month SIBOR is the most popular rate that loans are pegged to
and has been hovering below around 1% in the past few years.

Many floating rate mortgages in the country are pegged to SIBOR due to its transparency. Alternatives to
SIBOR include SOR, Fixed-rate mortgages, Combos (Combination of SIBOR and SOR). Although they
may be higher or lower than SIBOR at any point of time, they usually move in tandem with the direction of
SIBOR and are used by banks to help price loans.

SIBOR is being discontinued, with the 6-month SIBOR rate being discontinued with effect from 31 March
2022, and the rest of SIBOR to be discontinued with effect from 31 December 2024.[2] SIBOR will be
functionally replaced by SORA (Singapore Overnight Rate Average).

See also
Adjustable-rate mortgage
Fixed-rate mortgage
Singapore Swap Offer Rate (SOR)
Euribor
TIBOR
Prime rate
TED spread
LIBOR-OIS spread
LIBOR
HIBOR
SAIBOR

References
1. Singapore tells banks to review Sibor (https://www.ft.com/cms/s/0/84f8ca26-d619-11e1-b547
-00144feabdc0.html#axzz38zRorWc8), Financial Times 25 July 2012
2. [1] (https://abs.org.sg/benchmark-rates/transition-roadmap), ABS 27 January 2023

External links
Association of Banks in Singapore (ABS) (http://www.abs.org.sg)
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