Euribor - 10 things to know with detail
- 1. Euribor stands for Euro Interbank Offered Rate and is the average interest rate at which a selection of European banks lend money to one another.
- 2. Euribor is used as a reference rate for many financial products, including mortgages, loans, and derivatives, in the Eurozone.
- 3. There are different Euribor rates depending on the maturity of the loan, ranging from overnight to 12 months.
- 4. Euribor rates are published daily by the European Money Markets Institute (EMMI) and are based on submissions from a panel of banks.
- 5. The Euribor is calculated as an average of the rates submitted by the panel banks, after excluding the highest and lowest rates.
- 6. Euribor is widely used as a benchmark for setting interest rates on financial products, with many loans and mortgages in Europe being tied to it.
- 7. The Euribor rate is often used in conjunction with a margin or spread, which is added on top of the Euribor rate to determine the final interest rate on a loan.
- 8. Euribor rates are influenced by factors such as monetary policy, market conditions, and economic indicators.
- 9. Euribor rates can fluctuate daily, weekly, or monthly, depending on market conditions.
- 10. Changes in Euribor rates can have a significant impact on the cost of borrowing for consumers and businesses, as well as on the profitability of financial institutions.