What is the Euribor

Posted on | August 3, 2011 | No Comments

Interbak European Offered Rate is the acronym that gives rise to Euribor, Spanish European Interbank Offered rate. Every day we hear about the Euribor, but specifically what is the Euribor? Then try to explain the usefulness of this indicator, in addition to its importance to the economics of banking. What is the Euribor? Specifically Euribor is the value at which financial institutions lend money to each other in the interbank market of the countries that are handled with the euro. Refers to the operations of banks in Europe, taking into account the offer price of loans made ??among themselves the 42 major banks in Europe. Euribor value changes from day to day and is constantly updated as money lending transactions undertaken between the bank largest in Europe. Today its value is of 1,420%. How is the Euribor? Its value is estimated by calculating an average interest rate of major banks for deposits European banks. The value of this index is different every day, except for the Euribor Euribor year or six months, used for mortgages. The usefulness of Euribor appears to be a reference value. In all countries of the euro in banks is used for loans to banks, and its global nature gives validity to the entire European continent. Evolution of Euribor (source: Wikipedia ). What we see above is the evolution of the Euribor a year since 1999, when such reference is launched. See two clear peaks, in August 2000 and reaching 5248% in July 2008 when it reached 5393%, and then collapse and begin to climb timidly in the current year. With his birth on January 1, 1999, the Euribor encompassed within itself the main local reference rates in Europe, such as Pibor Paris, Frankfurt FIBOR or, in the case of Spain, Mibor when Bank of Spain ceded his powers to the European Central Bank . Related posts: Understanding the problem of the mortgages in Spain The greater liquidity in the history of the European Central Bank What is a loan

Comments