What is a panel bank?

In the financial world, the panel bank usually applies to one of several banks that contribute to the Euribor or the similar process of setting a collective interest rate. The establishment of interest rates based on what banks borrow one another helps to define some popular and active daily markets. The panel bank therefore has a huge impact on the current state of financial activities.

The Eurobor rate or the European Mezibanka is an interest rate at which the panel or other bank bank is generally borrowed at the moment. The US -based US system uses Libor or London for the same purposes. These rates help to set prices of different derivatives of their own capital and otherwise load lending and trading.

Bank panel reports its credit interest rates estimates every day when EURIBOR or Libor is open. After each panel's bank offered its rate, all rates are collected and produced by a brown IBOR based on a "shortened diameter" of a series of characters. TheThese numbers support different types of long -term and short -term investments.

One of the financial products supported by the estimates of each panel in EURIBOR or Libor is interest swaps. In these accounting agreements, one party receives interest payments from the loan provided with the attention of the status of the offered rate. Companies are available to various types of interest swaps and related speculative agreements on complicated money and assets that can pay off to knowledgeable managers. Hedge fund managers often use Knowledge of EURIBOR or Libor when involved in these types of financial stores.

Using EURIBOR or Libor concerns the idea of ​​putting money into foreign banks, unlike their maintenance in domestic banks. The practice of rebellion is also to move money to a foreign banking system. For example, when dollars are moved to European banks (subject to EEGIS Euribor), they are called “EurodolLary ”.

In addition to EURIBOR, which represents a daily interest rate, there is another immediate rate of interbank rates offered. The EONIA or Euro Overnight Index average represents the rate overnight for the same credit procedures. Financial managers can use both Euribor and Eonia to create monetary policy for their employers based on current interest rates.