Euribor

Euro Interbank Offered Rate (EURIBOR ) is a reference interest rate for time deposits in euro in the interbank market, since 1 January 1999 is determined on each business day for the maturities 1 week, 2 and 3 weeks and the 12 monthly maturities from 1 month to 12 months. Since 1 November 2013, only the values ​​for the maturities 1 week, 2 weeks, 1 month, 2, 3, 6, 9 and 12 months are published.

History

In January 1998, the banking associations in Brussels have created with the "EURIBOR Code of Conduct " the legal basis for the common reference rate EURIBOR. Then the EURIBOR sparked from 1 January 1999, the national reference rates determined - as the FIBOR (Frankfurt Interbank Offered Rate) - from and thus became the interbank rate of the euro- zone. At the same time the Euribor from ACI was planned as an alternative to LIBOR.

Determination

Business Daily (subject to the bank working days of the TARGET2 system ) Report currently 32 banks, including three German banks to 10:45 Brussels time clock offered rates ( letter sets ) to the information provider Thomson Reuters. This determines the average rates and publish it on Reuters (formerly Moneyline Telerate, before Bridge Telerate page 248) at 11:00 clock with three decimal places. It does not flow, the 15 % highest and 15% of the lowest reported rates in the Euribor calculation. This will cause interest outliers do not distort the market. For the calculation of interest, the interest calculation method applies actual 360.

In the business section of the daily newspapers of the EURIBOR is published daily and is available online via Reuters.

Use

The EURIBOR is both an important reference for short-term loans, on the other hand, for the system of fixed deposits an important information in order to negotiate safe with the bank on the amount of the fixed deposit interest rates is. Banks lend money for so-called Euro 1, 2, 3 to 6 months based on EURIBOR plus a premium (usually are between 0.5 and 2 percentage points premium to Euribor interest rate).

In addition, the EURIBOR is often used as a reference interest rate for variable rate bonds and swaps.

Suspicion of manipulation

In October 2011, the European Commission announced to determine because of suspicion of manipulation against several major European banks. It is suspected that there had been associated with based on the EURIBOR derivative financial products to a cartel.