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Home Glossary Basis point (“bp”)

Basis point (“bp”)

Updated time: 23 Jun, 2015, 14:20 (UTC+08:00)

One one-hundredth (1/100) of a percentage unit. For example, 50 basis points equals one half of one percent. Banks quote variable loan rates in terms of an index plus a margin and the margin is often described in basis points, such as LIBOR plus 400 basis points (or, as the experts say, “beeps”).

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