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Marginal Cost Of Funds. The incremental cost of borrowing more money to fund additional asset purchases or investments. In its simplest calculation, the marginal cost of funds is simply the interest rate on the new loan balance.
Definition: LIBOR is the benchmark interest rate that banks charge each other for overnight, one-month, three-month, six-month and one-year loans. It's the benchmark for bank rates all over the world. LIBOR is an acronym for London InterBank Offered Rate. Reuters publishes it each day at 11 a.m. in five currencies.