DEFINITION of 'Panel Bank'

The name given to the group of banks contributing to the Euro Interbank Offer Rate (EURIBOR). This group is made up of the largest participants within the Euro money market. The panel bank complies daily quotes on the interest rates that banks offer one another for overnight loans. The resulting figure, the EURIBOR, is similar to London Interbank Offered Rate (LIBOR). The EURIBOR is used as a reference rate for bonds, swaps, loans and other instruments.

BREAKING DOWN 'Panel Bank'

Panel bank institutions transact the largest volumes within the Euro market, and provide stability and liquidity. Furthermore, these banks are located both inside and outside of Europe, and aren't always associated with regions recognizing the EU.

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RELATED FAQS
  1. What is the difference between LIBID and LIBOR?

    Both LIBID and LIBOR are rates primarily used by banks in the London interbank market. The London interbank market is a wholesale ... Read Answer >>
  2. What are the differences between the Federal Funds Rate and LIBOR?

    Learn the key differences between the federal funds rate and the London Interbank Offered Rate, including currency denomination ... Read Answer >>
  3. How did LIBOR come into use?

    Learn about the significance of the London Interbank Offered Rate, or LIBOR, and the history of how the daily LIBOR became ... Read Answer >>
  4. How does LIBOR compare to the Federal Reserve rate as an accurate indicator?

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  5. How did the LIBOR scandal affect interest rate swaps?

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  6. Where on the internet can I find LIBOR rate information?

    Learn what the LIBOR is, which website provides general LIBOR information and which website provides ICE LIBOR data going ... Read Answer >>
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