EURIBOR and Monopoly: Difference between pages

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(Euro Interbank Offered Rate).
A market form, characterised by one seller, selling a product for which there are no close substitutes.


Sponsored by the European Banking Federation ([http://www.euribor-ebf.eu/ EBF]),  EURIBOR® is a formal benchmark or reference interest rate launched in 1998.
== See also ==
 
* [[Antitrust law]]
It estimates the all-in, simple interest rate (including credit premium and liquidity premium) at which euro denominated interbank term deposits for spot value (T+2) are offered within the euro-zone by one prime bank to another prime bank in the period before 10.45 [[CET]] each business morning.
* [[Cartel]]
* [[Competition Commission]]
* [[Economies of scale]]
* [[Monopolisitic competition]]
* [[Oligopoly]]
* [[Perfect competition]]
* [[Trust]]
   
   
EURIBOR is calculated for periods ranging from one day to one year. It is quoted to three decimal places and on an actual/360 day-count.
__TOC__
==Contributing rate estimates==
Since September 2013, the panel of banks contributing to Euribor is made up of 32 banks though it has been larger in the past.
The banks submit their estimate, to two decimal places, of the rate "at which euro interbank term deposits are being offered within the Eurozone by one prime bank to another at 11 am Brussels time" ("the best price between the best banks"). This is similar to the question for [[LIBOR]] contributing banks prior to reform of LIBOR in 1998 to improve accountability of contributing banks for the submitted rate.
The EBF publish a [http://www.euribor-ebf.eu/assets/files/Euribor_code_conduct.pdf code of conduct] for contributing banks.
==Euribor calculation==
In calculating the Euribor from the submitted rates, the highest and lowest 15% of submitted rates are ignored and the central 70% remaining is averaged and published to 3 decimal places.
Thomson Reuters is the screen service provider responsible for computing and also publishing Euribor.
The Euribor process is overseen by a [http://www.euribor-ebf.eu/euribor-org/steering-committee.html Steering Committee].
== See also ==
* [[Benchmark]]
* [[EONIA]]
* [[Euro LIBOR]]
* [[InterBank Offered Rate]]
* [[LIBOR]]
* [[TIBOR]]


[[Category:Manage_risks]]

Revision as of 14:20, 23 October 2012

A market form, characterised by one seller, selling a product for which there are no close substitutes.

See also