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The interest rate charged by banks in the United Arab Emirates for interbank transactions. In most cases, EIBOR is the reference rate most commonly used by borrowers and lenders to conduct financial transactions in Dubai and the surrounding Emirates. Interbank rates reflect the average of eight banks, excluding the highest and lowest rates provided on a daily basis. United Arab Emirates banks launched a one-week interbank offered rate
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How the banks decide a interbank offer rate like LIBOR in other words what factors lead these banks to comeup with interbank offer rate?
"The banks are asked daily by the BBA to "contribute the rate at which they could borrow funds from other banks for certain short-term periods were they to do so by asking for and then accepting interbank offers in reasonable market size". In other words, the banks' quote reflect what is offered to them, NOT what they are offering to others.
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The supreme court used to. now they decide based on contributions.!!
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So they can see how much people there is in United States
