Euro Interbank Offered Rate

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Daily 1-week (green), 3-month (blue), 1-year (red) Euribor rates since the introduction on January 1, 1999

Euro InterBank Offered Rate ( EURIBOR ) is a reference interest rate for time deposits in euros in interbank business , determined since January 1, 1999 on bank working days for terms of 1 week, 2 and 3 weeks and the twelve monthly terms of 1 month to 12 months. Since November 1, 2013, only the values ​​for the terms 1 week, 2 weeks, 1 month, 2, 3, 6, 9 and 12 months have been published.

history

In January 1998, the associations of the banking industry in Brussels created the legal basis for the common reference interest rate EURIBOR with the “EURIBOR Code of Conduct”. Thereafter, on January 1, 1999, the EURIBOR replaced the nationally determined reference interest rates - such as the FIBOR ( Frankfurt Interbank Offered Rate ) - and thus became the interbank rate for the EMU zone. At the same time, the EURIBOR was planned by the ACI as an alternative to the LIBOR . The whole thing is coordinated by the European Money Markets Institute (EMMI).

detection

On business days (the banking days of the TARGET2 system apply ), 19 EURIBOR panel banks, including two German banks, report offer rates ( letter rates ) to the New Zealand company Global Rate Set Systems by 10:45 am Brussels time , which determines the average rates. Until June 30, 2014 this was done by the information provider Thomson Reuters . The average rates are published on Reuters (formerly Moneyline Telerate , before that Bridge Telerate page 248) at 11:00 am with three decimal places (see the Reuters page "EURIBOR01" and the Reuters RIC "EURIBOR ="). For the calculation, the 15% of the highest and 15% of the lowest reported interest rates are not included in the EURIBOR calculation. This should ensure that interest rate outliers do not distort the market. The interest calculation method actual / 360 applies to the interest calculation .

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

use

The EURIBOR is on the one hand an important reference value for short-term loans, on the other hand it is also important information for the investment of fixed- term deposits in order to be able to safely negotiate the amount of the fixed-term deposit rate with the bank. Banks lend so-called euro money for 1, 2, 3 to 6 months at EURIBOR plus a surcharge (a surcharge of between 0.5 and 2 percentage points to the EURIBOR interest rate is usual ).

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

manipulation

In October 2011 the European Commission announced that it was investigating several major European banks on suspicion of manipulation . There is a suspicion that a cartel has been formed in connection with derivative financial products based on EURIBOR . As one of the accused financial institutions, the London subsidiary of Deutsche Bank pleaded guilty in April 2015 and was sentenced to pay fines of around US $ 2.5 billion.

See also

Web links

Individual evidence

  1. ↑ EBF Reduction in the number of Euribor tenors as of November 1, 2013, PDF
  2. ↑ Silke Schwirz, The Euro, international contracts and financial derivatives , 1999, p. 202
  3. ↑ European Money Markets Institute (EMMI)
  4. ↑ EURIBOR panel banks
  5. ↑ Global Rate Set Systems
  6. ↑ Euribor Technical Features, p. 1 (PDF; 71 kB)
  7. ↑ EU determined because of interest rate manipulation. Börsenzeitung , October 20, 2011, p. 3
  8. ↑ http://www.justice.gov/opa/pr/deutsche-banks-london-subsidiary-agrees-plead-guilty-connection-long-running-manipulation