CIBOR

CIBOR, or Copenhagen Interbank Offered Rate, is a benchmark interest rate used in Denmark that reflects the average rate at which Danish banks are willing to lend to each other in Danish kroner on the interbank market. It serves as a reference for a wide range of Danish financial instruments, including mortgages, corporate loans, and interest-rate derivatives.

The rate is calculated from quotes submitted by a panel of major Danish banks for several maturities, typically including overnight, 1 week, 1 month, 3 months, 6 months, and 12 months. After removing outliers, the remaining quotes are averaged to form the published rate each business day. The calculation and publication are overseen by a benchmark administrator in compliance with the European Union’s benchmarks regulation.

CIBOR is used similarly to other interbank offered rates such as EURIBOR and LIBOR, though the specific references depend on Danish market conventions. In practice, movements in CIBOR reflect interbank liquidity conditions and expectations of monetary policy in Denmark. The use of CIBOR has evolved with reforms aimed at increasing reliability and reducing susceptibility to manipulation, including strengthened governance, more robust data collection, and rigorous validation procedures.

Like other interbank rates, CIBOR can be influenced by liquidity shifts in the Danish banking system. It coexists with other Danish reference rates and, in some markets, is being supplemented or replaced by alternative benchmarks as part of global reform efforts.

See also: Euribor, Tibor, Libor (historical).