I have noted that many banks include provisions to round the libor interest rate up to the nearest 1/16th, 1/8th, 1/100th. Is this a standard convention in the industry? It appears that 1/16th is the most prevalent approach, is that true? thankyou for your insights

In commercial lending, which is what I do…. We do not round anything up, we just add a premium to it depending on our perceived risk. Most important would be which libor is being used as the 3-month is higher than the 1-month.