Abstract London Interbank Offered rate (‘Libor’) scandal occurred when banks were fraudulently increasing or lowering the interest rates so that they gain from trade or give an impression that their entities are performing better and are credit worthy (Miller-Jones, 2012). ‘Libor’ is calculated on a daily basis by the British Bankers’ Association. ‘Libor’ was introduced in 1986 to act as a measure of uniformity because there were several banks that were trading actively on a number of market instruments. Since the occurrence of the fraud, there has been a change in the perception of the public about the rate. This paper will discuss the worldwide use of ‘Libor’ and its application and future outlook of ‘Libor’. Worldwide Use of ‘Libor’ and Its Application Never intended to be used like it is today when created in 1986 At that time when the Libor was formulated, it was not of much significance and wide coverage as it is now. In the current international financial system, ‘Libor’ has an imperative role because it gives an indication on the well-being of the banking segment and the overall financial structure. The banks will report a low rate when they have self-assurance in the state of affairs in the financial structure. On the other hand, they will report a high rate when they have low confidence. Also, ‘Libor’ is used by several institutions as a benchmark rate for the various financial instruments that they trade in. Examples of the instruments that rely on the ‘Libor’ are mortgages, derivatives, savings and student loans among other products. The usage of ‘Libor’ has grown tremendously over the years. This makes it more significant in the current financial system than it was when it was created in 1986. Besides, several countries across the globe such as Switzerland, Canada, the United States and the United Kingdom rely on ‘Libor’ as a benchmark and a reference rate (Morini, 2011). The total amount that trades on ‘Libor’ As mentioned in the section above, ‘Libor’ is used to fix the borrowing charges for various products. Thus, when ‘Libor’ rate changes, the costs of borrowing for the various products also change. Trillion of dollars that have been loaned out depend on ‘Libor’. Precisely, ‘Libor’ places rates on overwhelming $360 trillion of financial products worldwide. Thus, apart from the number of products that rely on the ‘Libor’ rate, the value of these products is also high. This shows the importance of the ‘Libor’ rate in the financial system. It also indicates that any slight manipulation of the rates will have a significant impact on the financial system. Several other ‘Libor’ types instruments There are several other ‘Libor’ types of instruments. Examples of these types of instruments are ‘Libor’, ‘Euribor’,’ Hibor’, ‘Sibor’, and ‘Tibor’. ‘Sibor’ (Singapore Interbank Offered Rate) is the rate used between bank lending for unsecured funds in Singapore. The rate is widely used in Asia. Besides, the Association of Banks in Singapore fixes the rate. The ‘Euribor’ (Euro Interbank Offered Rate) is also used for interbank lending for unsecured loans. The daily rate is used by the banks that operate in the Eurozone. The rate is used as a be