ESMA-EBA: ‘Significant Progress’ with Euribor Reforms
The European Securities and Markets Authority (ESMA) and the European Banking Authority (EBA) said that measures for restoring public confidence in the Euro Interbank Offered Rate (Euribor) have made ‘significant progress’ over the past year.
The two European Union (EU) regulators issued guidelines to the European bank industry body, Brussels-based Euribor-EBF, in January 2013 from shielding the benchmark rate from rigging. A number of banks have been fined for manipulating Euribor and its bigger counterpart, the London Interbank Offered Rate (Libor). Both are used in the pricing of financial products, from home loans to credit cards.
The review found that four of ESMA-EBA’s recommendations had been subsequently implemented and a further six partially implemented. “The EBA and ESMA look forward to seeing a quick conclusion by Euribor-EBF of its work on those recommendations where full implementation is still pending,” the two authorities added.
“Euribor is a key global financial benchmark,” said Steven Maijoor, ESMA chair. “The reforms undertaken by Euribor-EBF are a key prerequisite for ensuring confidence among rate submitters and final users of the benchmark. Beyond the immediate changes recommended by the EBA and ESMA, international cooperation on reforming interbank benchmarks is progressing. Euribor should be ready to respond to these advances.”
Andrea Enria, EBA chair, added: “Euribor-EBF is on the right path. Its progress in terms of governance and conduct reflects a strong commitment to ensuring the quality of its benchmarks. I remain confident that the Euribor-EBF will soon complete its work, building on the continued support and commitment of panel banks.”