Singapore Swap Offer Rate (SOR)
Singapore Swap Offer Rate, or SOR, is basically the cost of borrowing money in Singapore. Just like if you want to borrow a toy from a friend, they might ask you to give them a snack in return, when banks give loans to people, they charge interest rates.
The SOR is the interest rate that banks use when they lend money to each other in Singapore. This rate is based on the market demand and supply of money, which means that it can change a lot depending on how much money is available in the market.
When people or businesses need to borrow money from banks in Singapore, they might have to pay an interest rate that is based on the SOR. For example, if the SOR is 1%, and someone wants to borrow $100,000, they might have to pay back $101,000 in total after one year.
The SOR is an important benchmark rate for financial instruments like interest rate swaps and futures contracts. It can affect the cost of borrowing for businesses and individuals, as well as impact the stock prices of companies that rely heavily on borrowing from banks.
The SOR is the interest rate that banks use when they lend money to each other in Singapore. This rate is based on the market demand and supply of money, which means that it can change a lot depending on how much money is available in the market.
When people or businesses need to borrow money from banks in Singapore, they might have to pay an interest rate that is based on the SOR. For example, if the SOR is 1%, and someone wants to borrow $100,000, they might have to pay back $101,000 in total after one year.
The SOR is an important benchmark rate for financial instruments like interest rate swaps and futures contracts. It can affect the cost of borrowing for businesses and individuals, as well as impact the stock prices of companies that rely heavily on borrowing from banks.