Euro Interbank Offer Rate - EURIBOR

AAA

DEFINITION of 'Euro Interbank Offer Rate - EURIBOR'

The rates offered to prime banks on euro interbank term deposits. The EURIBOR is based on average interest rates established by a panel of around 50 European banks (panel banks) that lend and borrow from each other. Loan maturities vary from a week to a year and their rates are considered among the most important in the European money market.

INVESTOPEDIA EXPLAINS 'Euro Interbank Offer Rate - EURIBOR'

There are 15 different EURIBOR rates and the banks contributing to EURIBOR must meet stringent qualification rules, including that they be in good market standing. They are selected to ensure that the diversity of the euro money market is fairly represented. As a result, the EURIBOR has consistently been regarded as an accurate guide to what is happening in the euro money market.

RELATED TERMS
  1. LIBOR

    LIBOR or ICE LIBOR (previously BBA LIBOR) is a benchmark rate ...
  2. Money Market

    A segment of the financial market in which financial instruments ...
  3. Panel Bank

    The name given to the group of banks contributing to the Euro ...
  4. Quanto Swap

    A swap with varying combinations of interest rate, currency and ...
  5. Euro LIBOR

    London Interbank Offer Rate denominated in euros. This is the ...
  6. Emirates Interbank Offered Rate ...

    The interest rate charged by banks in the United Arab Emirates ...
Related Articles
  1. Personal Finance

    What Are Central Banks?

    They print money, they control inflation, and much, much more. All you need to know about central banks is here.
  2. The annual percentage rate, or APR, is the cost per year of borrowing.
    Credit & Loans

    What's the Annual Percentage Rate (APR)?

    The annual percentage rate, or APR, is the cost per year of borrowing. By law, all financial institutions must show customers the APR of a loan or credit card, which clearly indicates the real ...
  3. Simple interest is a quick method of calculating the interest charged on a loan.
    Investing

    Simple Interest

    Simple interest is a quick method of calculating the interest charged on a loan. Simple interest is determined by multiplying the interest rate by the principal by the number of periods.
  4. An interest rate swap is an exchange of future interest receipts.
    Investing

    What's an Interest Rate Swap?

    An interest rate swap is an exchange of future interest receipts. Essentially, one stream of future interest payments is exchanged for another, based on a specified principal amount.
  5. Options & Futures

    How does a bond's coupon interest rate affect its price?

    Find out why the difference between the coupon interest rate on a bond and prevailing market interest rates has a large impact on how bonds are priced.
  6. Economics

    Understanding The Treasury Yield Curve Rates

    Treasury yield curves are a leading indicator for the future state of the economy and interest rates.
  7. Credit & Loans

    What are the differences between APR in Europe and the U.S.?

    Learn how the regulatory authorities in the U.S., the European Union and the U.K. treat the calculation and disclosure of APR for loans.
  8. Credit & Loans

    Why is APR used to compare long-term loans?

    See what benefits an annual percentage rate, or APR, offers to consumers that other interest rate calculations might not, especially with long-term debt.
  9. Personal Finance

    Success: Hard Work Or Good Fortune?

    Any success that I may have had as a freelancer has been mostly hard work, but auspicious timing and lucky breaks have also helped my career along the way.
  10. Credit & Loans

    How is interest charged on most lines of credit?

    Learn how most financial institutions calculate interest on lines of credit by using the average daily balance method and periodic rates.

You May Also Like

Hot Definitions
  1. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  2. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  3. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  4. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  5. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  6. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
Trading Center