DEFINITION of 'Panel Bank'

Panel bank is the name given to the participating group of banks that contribute to the Euro Interbank Offer Rate (EURIBOR). This group is made up of the largest participants within the Euro money market. Each panel bank complies daily quotes on the interest rates that banks offer to one another for overnight loans. The resulting figure, the EURIBOR, is thus similar to London Interbank Offered Rate (LIBOR) in the United Kingdom.

The EURIBOR is used as a reference rate for bonds, swaps, loans, and other instruments. Another Eurozone overnight interest rate that is commonly used, and is in competition with EURIBOR, is the EONIA rate.

As of July 2018 there are 20 panel banks from 10 countries. In 2016, there were 23 panel of banks contributing to EURIBOR, which is down from 44 contributing banks in 2012. The panel banks are those with the greatest volume of daily business in the Eurozone money markets. These include banks from EU countries participating in the euro as well as large international financial institutions from non-EU countries, but who have significant Eurozone operations.

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. Panel banks are responsible for setting the EURIBOR overnight rate, which is subsequently used as a benchmark rate against which several other rates are set - such as those on swaps, loans, mortgages, and auto loans. Interest rate swaps, in particular, are based on the EURIBOR rate.

Panel Bank Members

Panel bank members can change over time as certain banks become more active in Eurozone money markets, and as others' wane. Each panel bank must adhere to the EURIBOR code of conduct and attest to them on an annual basis, maintained by the European Money Markets Institute (EMMI).

As of July 2018, there are 20 contributing panel banks from 10 countries (all of which are in the EU or UK at this time):

Belgium
Belfius

France
BNP-Paribas - HSBC France - Natixis - Crédit Agricole s.a. - Société Générale

Germany
Deutsche Bank - DZ Bank 

Greece
National Bank of Greece

Italy
Intesa Sanpaolo - Monte dei Paschi di Siena - UniCredit

 

Luxembourg
Banque et Caisse d'Épargne de l'État

Netherlands
ING Bank

Portugal
Caixa Geral De Depósitos (CGD)

Spain
Banco Bilbao Vizcaya Argentaria - Banco Santander - CECABANK - CaixaBank S.A.

Other EU Banks
Barclays 

RELATED TERMS
  1. Interbank Rate

    The interbank rate is the rate of interest charged on short-term ...
  2. Commercial Bank

    A commercial bank is a type of financial institution that accepts ...
  3. Universal Banking

    Universal banking is a system in which banks provide a wide variety ...
  4. National Bank

    In the United States a national bank is a commercial bank, while ...
  5. Interbank Market

    The interbank market is the global network used by financial ...
  6. Leveraged Floater

    A leveraged floater, also known as a leveraged floating-rate ...
Related Articles
  1. Investing

    Recession 2020? Economists See High Chances

    The recession could follow a boost to economic growth over the next two years.
  2. Insights

    The World's Top 10 Banks

    Learn more about the world's largest banks and how more financial power shifts eastward as China is home to four of the world's largest banks.
  3. Personal Finance

    Retail Banking vs. Corporate Banking

    Retail banking is the visible face of banking to the general public. Corporate banking refers to the aspect of banking that deals with corporate customers. Check out more on the differences between ...
  4. Insights

    Tesla Unveils New 'Sleek, Low-Profile' Solar Panels

    Tesla has unveiled new solar panels which aim to combine elegance with utility.
  5. Personal Finance

    How Banks Are Dealing With Low Interest Rates

    A surge in mortgages may help banks offset thin profit margins in the prolonged low-interest-rate environment.
  6. Investing

    EU Bank Stress Test Results: A Preview

    The tests of 51 banks covering 70% of total banking assets across the EU come at a time of great turmoil in banking when many financial shares have plunged
  7. Insights

    Why These European Countries Don't Use the Euro

    The euro is a common currency of the European Union. Yet, many EU countries don’t use the euro. Investopedia explores why.
RELATED FAQS
  1. How do interest rate changes affect the profitability of the banking sector?

    Learn how interest rates affect the banking sector. When interest rates rise, the profitability of the banking sector increases. Read Answer >>
  2. How is Libor determined?

    The leading indicator used to price debt instruments, LIBOR is produced once a day by the Intercontinental Exchange (ICE) ... Read Answer >>
  3. What is the difference between an investment and a retail bank?

    Learn the primary differences between retail banks and investment banks by examining the business activities, type of clients ... Read Answer >>
  4. What's the difference between investment banks and commercial banks?

    Understand the principal differences between investment banks and commercial banks, and the areas of banking services that ... Read Answer >>
  5. How does an entrepreneur choose a business structure?

    Interest rate swaps involve exchanging interest payments, while currency swaps involve exchanging an amount of cash in one ... Read Answer >>
  6. What is the difference between LIBID and LIBOR?

    LIBID and LIBOR are benchmark rates set by banks in the London interbank market, referring to what banks are willing to charge ... Read Answer >>
Trading Center