Euribor Press Releases

Press releases

M 4
MC
N° 778
Brussels, 13 July 1998

Euribor® Welcomes Remunerated Minimum Reserves

The European Banking Federation has welcomed the decision of the European Central Bank to remunerate minimum reserves to be applied to credit institutions located in the euro zone.

"This clarification by the ECB is of great importance for the European financial community as it clears the path for the development of a deep domestic euro money market. The decision to remunerate minimum reserves effectively ensures the success of Euribor® as the domestic reference rate for the euro," commented Mr Nikolaus Bömcke, Secretary General of the European Banking Federation.

Euribor®, the benchmark rate of the large euro money market, will benefit from this decision as the remuneration will fully offset the disadvantage of holding reserves. This is good news for Euribor® as it enters the final stage of preparation.

European swap market participants already clearly favour Euribor® - as demonstrated by the results of a recent market survey conducted by WestLB and Intercapital Brokers. The survey showed that 70% of EMU banks favoured the use of Euribor® as reference rate for swaps. There is no doubt that the ECB’s decision will strengthen the Euribor® reference still further.

For further information please contact:

Tanguy van de Werve

European Banking Federation
rue Montoyer 10
B - 1000 Brussels

Tel: +32 2 508 37 25
Fax: +32 2 502 79 66

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