The Euro Interbank Offered Rate (Euribor) is a daily reference rate, published by the European Money Markets Institute, based on the averaged

interest rate An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, ...

s at which

Eurozone The euro area, commonly called the eurozone (EZ), is a Monetary union, currency union of 20 Member state of the European Union, member states of the European Union (EU) that have adopted the euro (Euro sign, €) as their primary currency ...

banks borrow unsecured funds from counterparties in the

euro The euro (currency symbol, symbol: euro sign, €; ISO 4217, currency code: EUR) is the official currency of 20 of the Member state of the European Union, member states of the European Union. This group of states is officially known as the ...

wholesale

money market The money market is a component of the economy that provides short-term funds. The money market deals in short-term loans, generally for a period of a year or less. As short-term securities became a commodity, the money market became a compo ...

(before only in the interbank market). Prior to 2015, the rate was published by the European Banking Federation.

Scope

Euribors are used as a reference rate for euro-denominated forward rate agreements, short-term interest rate

futures contract In finance, a futures contract (sometimes called futures) is a standardized legal contract to buy or sell something at a predetermined price for delivery at a specified time in the future, between parties not yet known to each other. The item tr ...

s and interest rate swaps, in very much the same way as

LIBOR The London Inter-Bank Offered Rate (Libor ) was an interest rate average calculated from estimates submitted by the leading Bank, banks in London. Each bank estimated what it would be charged were it to borrow from other banks. It was the prim ...

s are commonly used for Sterling and

US dollar The United States dollar (symbol: $; currency code: USD) is the official currency of the United States and several other countries. The Coinage Act of 1792 introduced the U.S. dollar at par with the Spanish silver dollar, divided it int ...

-denominated instruments. They thus provide the basis for some of the world's most liquid and active interest rate markets. Domestic reference rates, like Paris's PIBOR, Frankfurt's FIBOR, and Helsinki's Helibor merged into Euribor on

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day on 1 January 1999. Euribor should be distinguished from the less commonly used "Euro LIBOR" rates set in

London London is the Capital city, capital and List of urban areas in the United Kingdom, largest city of both England and the United Kingdom, with a population of in . London metropolitan area, Its wider metropolitan area is the largest in Wester ...

by 16 major banks."Euro LIBOR", Investopedia
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Fallback

The EU Benchmark Regulation (Regulation (EU) 2016/1011) requires entities that use a benchmark to have robust plans in place to manage the possibility of a benchmark undergoing substantial changes or ceasing to exist. Where feasible and appropriate, such plans should nominate one or more fallback rates. To facilitate the drafting of such plans for entities using Euribor® rates, the European Money Markets Institute has developed Efterm, a forward-looking fallback rate based on available market data related to Dealer-to-Dealer and Dealer-to-Client OIS Swaps and futures that reference the European Central Bank's Euro Short-Term Rate (€STR).

Technical features

:''Official reference
EURIBOR Technical features
' A representative panel of banks provide daily quotes of the rate, rounded to two decimal places, that each Panel Bank believes one prime bank is quoting to another prime bank for interbank term deposits within the Euro zone, for maturity ranging from one week to one year. Every Panel Bank is required to directly input its data no later than 11:00 a.m. ( CET) on each day that the Trans-European Automated Real-Time Gross-Settlement Express Transfer system ( TARGET) is open. At 11:02 a.m. (CET), GRSS (Global Rate Set Systems) will instantaneously publish the reference rate on Refinitiv (ex. Reuters), Bloomberg and a number of other information providers which will then be made available to all their subscribers. The published rate is a rounded, truncated mean of the quoted rates: the highest and lowest 15% of quotes are eliminated, the remainder are averaged and the result is rounded to 3 decimal places. Euribor rates are ''spot'' rates, i.e. for a start two working days after measurement day. Like US money-market rates, they are '' Actual/360'', i.e. calculated with an exact daycount over a 360-day year. Euribor was first published on 30 December 1998 for value 4 January 1999.

Panel banks

Current banks

Former banks

Euribor-based derivatives

Euribor futures

EUR Euribor futures are traded on Intercontinental Exchange (ICE) and on Eurex. They were previously also traded on CurveGlobal, part of the London Stock Exchange Group, which has closed down operations in January 2022.

Interest rate swaps

Interest rate swaps based on Euribor rates currently trade in money markets for maturities up to 50 years. A "five-year Euribor" will be in fact referring to the 5-year swap rate vs 6-month Euribor. "Euribor + ''x'' basis points", when talking about a bond, will mean that the bond's cash flows have to be discounted on the swaps' zero-coupon

yield curve In finance, the yield curve is a graph which depicts how the Yield to maturity, yields on debt instruments – such as bonds – vary as a function of their years remaining to Maturity (finance), maturity. Typically, the graph's horizontal ...

shifted by ''x'' basis points in order to equal the bond's actual market price.

€STR

The other widely used reference rate in the euro-zone is €STR, published by the

European Central Bank The European Central Bank (ECB) is the central component of the Eurosystem and the European System of Central Banks (ESCB) as well as one of seven institutions of the European Union. It is one of the world's Big Four (banking)#International ...

References

External links

European Central BankEuribor homepageEuribor Rate, Daily Update (Bank of Finland)Euribor homepage
(informative historical data can also be foun

Euribor Today
{{Euro topics Eurozone Banking in the European Union Interest rates Mortgage industry indicators Reference rates