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Euribor-EBF Newsletter- 3rd edition


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On 14 December 2000, the Governing Council of the European Central Bank (ECB) has decided that, from 2002 until further notice, the Trans-European Automated Real-time Gross settlement Express Transfer (TARGET) system will be closed, in addition to Saturdays and Sundays, on the following days:
  • New Year's Day
  • Good Friday (Catholic/Protestant)
  • Easter Monday (Catholic/Protestant)
  • 1 May (Labour Day)
  • Christmas Day
  • 26 December

For further information, please visit the Website of the ECB.

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EURIBOR-EBF » EURIBOR® » History

History


European banks considered that the introduction, in 1999, of the single currency made it necessary to establish a new interbank reference rate within the Economic and Monetary Union: Euribor® (Euro Interbank Offered Rate). Euribor® is the benchmark rate of the large euro money market that has emerged since 1999. It is sponsored by the European Banking Federation (EBF), which represents the interests of some 5,000 European banks, and by the Financial Markets Association (ACI).

Key milestones:

  • On 15 December 1997, the European Banking Federation (EBF) and the Financial Markets Association (ACI) announces the progress of Euribor® development as "the new money market reference rate for the euro".
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    Euribor®: THE NEW MONEY MARKET REFERENCE RATE FOR THE EURO

    V7083AEV
    Brussels, 15 December 1997

    The European Banking Federation (EBF) and ACI, the Financial Markets Association, wish to inform the financial markets that very substantial progress has been made over the last two months on the creation of Euribor® ("EURO Interbank Offered Rate"). The Euribor® is the rate at which euro interbank term deposits will be offered within the EMU zone by one prime bank to another at 11.00 a.m. Brussels time.
    The EBF and ACI are pleased to announce that a Code of Conduct, laying down the rules applicable to Euribor® and to the banks which will quote for the establishment of Euribor®, has been finalised and agreed. Through the various national associations this Code has received the full support of practically the entire European Union banking community and this obviously constitutes a tremendous achievement.
    This Code of Conduct has three enclosures: a table on the national quotas for the number of panel banks from the different countries joining EMU from its start; rules to apply to the 6 international banks from non-EU countries which will participate in the panel and to up to 4 banks from EU countries which do not participate in EMU from the outset and, finally, rules to apply to the rotation of banks if banking communities from smaller countries, for compelling reasons, wish to nominate more banks to the panel than allowed under their national quota. Such rotation systems as well as the national quotas will be phased out after a start-up period of one year.
    The Euribor® will be supervised by a Steering Committee composed of 10 members who will be experienced market practitioners."This is a major breakthrough after difficult negotiations" said the Secretary General of the EBF, Mr Nikolaus Bömcke, "and an important step towards a single Euro money market when EMU starts in 1999".
    The choice of the screen service provider who will capture, compute and publish the Euribor® will be made very shortly.
    The national banking associations of all the Member States have been invited to communicate the names of their banks who will be members of the panel by the end of the year. The international banks will be chosen by the Steering Committee at the latest in June 1998.

  • On 27 May 1998, it is announced that the list of "Euribor® Reference Banks" is published.
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    final list of Euribor Reference Banks

    M 4- MC/BZ - N° 571
    Brussels, 27 May 1998

    The eagerly awaited list of banks which have been chosen to quote for Euribor® has been published today in Brussels. Euribor® (Euro Interbank Offered Rate) is the benchmark rate of the large euro money market that will emerge in 1999.
    "The creation of this truly European rate is a landmark for the European financial industry" commented Mr Nikolaus Bömcke, Secretary General of the Banking Federation of the European Union. "I am delighted that we have been able to finalise our panel of banks so soon after the historic naming of the countries which will take part in EMU from its start".
    The choice of banks quoting for Euribor® is based on market criteria. These banks are top-rated by international rating agencies. They have been selected to ensure that the diversity of the euro money market is adequately reflected. Consequently, Euribor® will be an efficient and representative benchmark, quoted from within the euro zone itself, where liquidity in euro will be at its strongest.
    Most countries - including Belgium, Germany, France, Ireland, Italy, Netherlands, Austria and Finland - have already announced that they intend to replace their domestic benchmark rates with Euribor® for both new and existing contracts. Other countries will follow.
    The group of banks quoting for Euribor® will also provide data for Eonia® (European Overnight Index Average), an effective rate based on effective volumes, published with the support of the European Central Bank. Thus, the entire range of euro benchmark rates will be computed using consistent methods.
    The contributors to Euribor® are the banks with the highest volume of business in the EMU zone money markets.
    In Belgium and Ireland, the bank(s) indicated will rotate after six months with banks of equal size and standing (Credit Communal and Bank of Ireland respectively), leaving the total number of reference banks unchanged.
    In addition to these 47 reference banks, four banks from EU countries not participating in the euro from the start (Barclays Capital, Den Danske Bank, Midland and Svenska Handelsbanken) and up to six large international banks from non-EU countries (among them Chase Manhattan, Morgan Guaranty and Bank of Tokyo - Mitsubishi) but with important euro zone operations will be added to the panel of reference banks.
    The panel will be reviewed after one year and regularly thereafter to ensure that only the most active banks contribute to Euribor®.

  • In 1998, the European Banking Federation (EBF) welcomes the decision of the European Central Bank (ECB) to remunerate minimum reserves to be applied to credit institutions located in the euro zone.
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    Euribor® Welcomes Remunerated Minimum Reserves

    M 4- MC- N° 778
    Brussels, 13 July 1998

    The European Banking Federation has welcomed the decision of the European Central Bank to remunerate minimum reserves to be applied to credit institutions located in the euro zone.
    "This clarification by the ECB is of great importance for the European financial community as it clears the path for the development of a deep domestic euro money market. The decision to remunerate minimum reserves effectively ensures the success of Euribor® as the domestic reference rate for the euro," commented Mr Nikolaus Bömcke, Secretary General of the European Banking Federation.
    Euribor®, the benchmark rate of the large euro money market, will benefit from this decision as the remuneration will fully offset the disadvantage of holding reserves. This is good news for Euribor® as it enters the final stage of preparation.
    European swap market participants already clearly favour Euribor® - as demonstrated by the results of a recent market survey conducted by WestLB and Intercapital Brokers. The survey showed that 70% of EMU banks favoured the use of Euribor® as reference rate for swaps. There is no doubt that the ECB’s decision will strengthen the Euribor® reference still further.

  • On 30 December 1998, Euribor® was first published for value 4 January 1999.
  • In June 2008, Euribor-EBF confirms that Euribor is an entirely satisfactory and reliable benchmark.
  • In January 2009, European banks celebrate the 10th Anniversary of Euribor.