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2 | SOR | SIBOR | SORA | |||
3 | What is it | Swap Offer Rate • Borrowing SGD synthetically through borrowing USD, then swapping it back to SGD | Singapore Interbank Offered Rate • Rate at which contributor bank is able to borrow from another bank | Singapore Overnight Rate Average • Volume-weighted average borrowing rate in overnight transactions | ||
4 | How is it calculated | Volume-weighted average rate of USD/ SGD FX swap transactions, computed using the USD LIBOR (abolished after 2021) | Based on daily submissions from banks and getting average rate after removing top and bottom 5 rates | Calculated volume-weighted average rate of borrowing transactions in the unsecured overnight interbank market between 0800-1815 | ||
5 | What is it used for | Commercial & wholesale loans | Home loans & commercial loans | |||
6 | How it performs | • Forward looking, computed based on expectations of future interest rate • More susceptible to market fluctuations, thus more volatile • Includes term and credit risk premium | • Backward looking • Not influenced by foreign exchange • Calculated based on actual transactions, more stability • Bank holds accountability for term and credit risks in customer spread | |||
7 | Who administers it | ABS Benchmarks Administration Co | Monetary Authority of Singapore (MAS) | |||
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