Frankfurt Interbank Offered Rate
Frankfurt Interbank Offered Rate ( FIBOR ) from 1985 to 1999, a reference interest rate on the money market , the weekdays in the banking center Frankfurt for DM - term deposits was calculated.
history
Almost a year after the preparations for the LIBOR began , the German banking industry agreed in August 1985 to create the FIBOR as the DM reference interest rate . For this purpose, twelve credit institutions originally reported their letter rates for three- and six-month time deposits, whereby the two extreme values (highest and lowest interest rate) were eliminated.
The FIBOR interest rates with terms between one and twelve months were determined from July 1990 to December 1998 and the FIBOR daily money FIONIA (Frankfurt Interbank Over-night Indexed Average Rate) from July 1996 to December 1998 using the act / 360 interest rate method. In addition, there were old-style FIBOR rates for three-month and six-month money, which were calculated from August 1985 to December 1998 using the 30/360 interest method. From July 1990 these rates were only used as the basis for expiring transactions. FIBOR and FIONIA were replaced on January 1, 1999 by the EURIBOR and EONIA introduced by the ACI .
detection
Every business day, 19 credit institutions (reference banks ) reported hypothetical asking interest rates for fixed-term deposits between one and twelve months, as would be granted unsecured to another bank in interbank trading , to the online service Telerate. This determined average rates and published them at 11:00 a.m. with five decimal places. The two highest and the two lowest reported interest rates were not included in the FIBOR calculation. This should prevent interest rate outliers from distorting the average interest rate. The actual / 360 interest calculation method was used to calculate the interest . FIBOR was published daily in the business section of the daily newspapers.
use
It was the reference interest rate for DM bonds with variable interest rates alongside the established LIBOR . The EURIBOR has now taken on its function . The FIBOR was on the one hand the basis for negotiation for short-term loans, on the other hand it was 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 interest with the bank. In addition, the FIBOR was used as the reference interest rate for floating rate bonds and swaps .
Individual evidence
- ^ Theodor Dams, Contributions to Social and Economic Policy , 1990, p. 218
- ↑ Deutsche Bundesbank via FIBOR ( Memento of the original from September 22, 2013 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice.
