what is the euro interbank offer rate euribor 
euribor or the euro interbank offer rate is a reference rate that is constructed from the average interest rate at which eurozone banks offer unsecured short term lending on the inter bank market the maturities on loans used to calculate euribor often range from one week to one year this is the benchmark rate with which banks lend or borrow excess reserves from one another over short periods of time from one week to 12 months 1 these short term loans are often structured as repurchase agreements repos and are intended to maintain bank liquidity and to make sure that excess cash is able to generate an interest return rather than sit idle understanding the euro interbank offer rate euribor the euro interbank offer rate euribor in fact refers to a set of five money market rates corresponding to different maturities the one week one month three month six month and twelve month rates 2 these rates which are updated daily represent the average interest rate that eurozone banks charge each other for uncollateralized loans euribor rates are an important benchmark for a range of euro denominated financial products including mortgages savings accounts car loans and various derivatives securities euribor s role in the eurozone is analogous to sofr which replaced libor in 2023 in britain and the united states 345who contributes to the euribor rate there are 19 panel banks that contribute to euribor these are the financial institutions that handle the largest volume of eurozone money market transactions as of july 2024 these panel banks include 6the difference between euribor and eoniaeonia or the euro overnight index average is also a daily reference rate that expresses the weighted average of unsecured overnight interbank lending in the european union and the european free trade association efta it is calculated by the european central bank ecb based on the loans made by 28 panel banks eonia is similar to euribor as a rate used in european interbank lending both benchmarks are offered by the european money markets institute emmi the main difference between eonia and euribor is the maturities of the loans they are based on eonia is an overnight rate while euribor is actually eight different rates based on loans with maturities varying from one week to 12 months the panel banks that contribute to the rates are also different only 19 banks contribute to euribor instead of 28 finally euribor is calculated by global rate set systems ltd not the ecb 