• TIBOR is an acronym for the Tokyo Inter-bank Offered Rate, which is the daily reference rate derived from the interest rates that banks charge to lend funds to other banks in the Japanese inter-bank market.
• There are two types of TIBOR rates—the European TIBOR rate and the Japanese Yen TIBOR rate.
• JBATA calculates the JBA TIBOR as a prevailing market rate by using quotes for six different maturities (one week, one month, two months, three months, six months, and 12 months).

TIBOR is published by the Japanese Bankers Association (JBA) every business day at 11:00 a.m. Japan Standard Time (JST) and no later than 12:35 p.m. There are two types of TIBOR rates—the European TIBOR rate and the Japanese Yen TIBOR rate.

The European TIBOR rate is based on Japan’s offshore market rates. The Japan offshore market was created in 1986 to help internationalize the country’s financial markets. Yen traded in the offshore market is termed Euroyen.

The Japanese Yen TIBOR rate is based on unsecured call market rates. The call market provides a place for financial institutions to lend to, or borrow from, other banks and lenders to either adjust an unexpected short-term surplus or make up an unexpected deficit. 

The Japanese Yen TIBOR has been calculated and published publicly by the Japanese Bankers Association since Nov. 1995, while the Euroyen TIBOR rates have been published since March 1998. Publishing the TIBOR rates helps contribute to the development and vitalization of Japan’s short-term financial markets.