Reform of interest rate benchmarks
Certain interest rate benchmarks like EONIA, EURIBOR and LIBOR are being reformed. If any of your financial products or internal processes refer to these rates or other interest rate benchmarks, the following information is relevant for you.
Interest rate benchmark are used to determine (1) the amount of interest payable for a wide range of financial products such as derivatives, bonds, loans, structured products and mortgages, and (2) the valuation of financial products.
The most common examples of interest rate benchmarks used in financial contracts are the Euro Overnight Index Average (EONIA), the Euro Interbank Offered Rate (EURIBOR) and the London Interbank Offered Rate (LIBOR).