Euribor Panel to include Finland’s OP Corporate Bank and the National Bank of Greece

Purpose:
The European Securities and Markets Authority (ESMA), the Finnish Financial Supervisory Authority (FSA), and the Hellenic Capital Market Commission (HCMC) have welcomed the inclusion of OP Corporate Bank and National Bank of Greece in the Euribor panel. This development marks a significant step towards reinforcing the soundness of the Euribor benchmark, which is rooted in real market activity.

The addition of these two banks brings valuable expertise to the table, enhancing the robustness and representativeness of Euribor. The revised methodology adopted by all members across the Euribor panel between May and October 2024 aims to substitute expert judgement with a fully transaction-based approach.

Effects on Industry:
The inclusion of OP Corporate Bank and National Bank of Greece in the Euribor panel is expected to have a positive impact on the European financial system. The stability of the European financial system is a priority for Finland, as stated by Tero Kurenmaa, Director General of Finnish FSA. This development will drive trust and transparency across the financial ecosystem, ultimately benefiting businesses and consumers.

The revised methodology adopted by Euribor aims to reduce reliance on expert judgement and increase transparency in benchmark calculations. This shift towards a fully transaction-based approach is expected to enhance the credibility and reliability of Euribor, making it an even more valuable reference point for market participants.

Relevant Stakeholders:
Credit institutions active in the unsecured euro money market are directly affected by this update. ESMA continues to encourage these institutions to consider becoming members of the Euribor panel, contributing to the robustness and representativeness of Euribor.

Market participants, including banks, investors, and financial institutions, will also be impacted by this development. The revised methodology and increased transparency in benchmark calculations are expected to enhance trust and confidence in Euribor as a reference point for market activities.

Next Steps:
Credit institutions active in the unsecured euro money market are encouraged to consider becoming members of the Euribor panel. This will enable them to contribute to the robustness and representativeness of Euribor, ultimately benefiting their businesses and customers.

Market participants should be aware that the revised methodology has been adopted by all members across the Euribor panel between May and October 2024. As a result, reliance on expert judgement will decrease, and transparency in benchmark calculations will increase, making Euribor an even more valuable reference point for market activities.

Any Other Relevant Information:
The announcement of OP Corporate Bank and National Bank of Greece’s inclusion in the Euribor panel was made by the European Money Markets Institute (EMMI) on 14 June 2024. ESMA continues to monitor and regulate the financial markets, ensuring that they operate fairly and transparently.

The revised methodology adopted by Euribor aims to increase transparency and reduce reliance on expert judgement. This shift towards a fully transaction-based approach is expected to enhance the credibility and reliability of Euribor, ultimately benefiting businesses and consumers across Europe.