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Terms Beginning with E
       
       
 

EURIBOR

Financial Term


EURIBOR (Euro Interbank Offered Rate) is the benchmark interest rate used in the Eurozone. It is the average interest rate that European banks charge when lending money to each other. EURIBOR is calculated daily by the European Banking Federation using the submissions of a panel of banks. The rate is published at 11 am Central European Time.

EURIBOR is used as a reference rate in a variety of financial products such as loans, mortgages, and derivatives. It helps investors and borrowers to determine the cost of borrowing or lending money. For example, if a borrower is taking out a variable-rate mortgage, the interest rate on the mortgage may be set as the EURIBOR rate plus a margin. As the EURIBOR rate changes, so does the interest rate on the mortgage.

The EURIBOR rate is considered a reliable benchmark as it represents the actual interest rates that banks use when lending to each other. The rate is based on the average of the rates submitted by a panel of banks, which helps to reduce the risk of manipulation. However, in the past, there have been cases of manipulation of the EURIBOR rate by banks, leading to fines and investigations by regulators.

Overall, EURIBOR plays a crucial role in the functioning of financial markets in the Eurozone and is closely monitored by the European Central Bank and other regulatory bodies.


   
     

EURIBOR

Financial Term


EURIBOR (Euro Interbank Offered Rate) is the benchmark interest rate used in the Eurozone. It is the average interest rate that European banks charge when lending money to each other. EURIBOR is calculated daily by the European Banking Federation using the submissions of a panel of banks. The rate is published at 11 am Central European Time.

EURIBOR is used as a reference rate in a variety of financial products such as loans, mortgages, and derivatives. It helps investors and borrowers to determine the cost of borrowing or lending money. For example, if a borrower is taking out a variable-rate mortgage, the interest rate on the mortgage may be set as the EURIBOR rate plus a margin. As the EURIBOR rate changes, so does the interest rate on the mortgage.

The EURIBOR rate is considered a reliable benchmark as it represents the actual interest rates that banks use when lending to each other. The rate is based on the average of the rates submitted by a panel of banks, which helps to reduce the risk of manipulation. However, in the past, there have been cases of manipulation of the EURIBOR rate by banks, leading to fines and investigations by regulators.

Overall, EURIBOR plays a crucial role in the functioning of financial markets in the Eurozone and is closely monitored by the European Central Bank and other regulatory bodies.


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