BIBOR, the short-term interest rate benchmark for Thai Baht, is the rate at which contributing banks offer to lend Thai Baht funds to prime banks, in a reasonable market size, on an unsecured basis in the Bangkok interbank market, just prior to 11 AM. The rate is derived by eliminating the first two highest and lowest of the quotes and arithmetic-averaging the remaining rates for the day.
Over the past year, the BOT continued its efforts in developing BIBOR, with an aim to reinforce the reliability and transparency of its fixing process, as well as for it to be increasingly used as a reference rate of financial transactions. The efforts undertaken include
- The BOT has closely monitored BIBOR rates and their movement to ensure that they are in line with transacted rates and suitably reflect situations in money market. The meetings between BOT and BIBOR contributors are arranged regularly to exchange view and discuss on relevant issues.
- In cooperation with BIBOR contributors, the BOT stepped up its public relations efforts targeted at both within the contributing banks themselves as well as their customers. One-on-one meetings and seminars have been held to enhance knowledge and understanding of BIBOR as well as importance and benefits of BIBOR.
- The BIBOR code of conduct was issued in 2014 as guidelines for submission process to strengthen the reliability and transparency of the reference rate setting processes.