Euro Overnight Index Average - Eonia
Like Euribor, Eonia (or the Euro Overnight Index Average) is a reference interest rate for banks.
Eonia is a bit different, since it’s specifically an overnight lending rate, which is calculated by the European Central Bank. It’s a weighted average calculation, which takes into account loans made by 28 specific banks.
Banks often lend to each other overnight when they’ve got extra cash lying around, or if they need extra cash for legal reserve requirements. It’s a win-win for banks to lend to each other, even just for the night. A long-term relationship made of one-night stands.
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Finance allah shmoop what is a lie Boer No it's
not the result of these two zoo animals Mating lie
Boer stands for london interbank offering rate And it's basically
just the british quote fed unquote central bank rate reflecting
the absolute lowest interest rate at which the british banking
system well loan money to its best Most well heeled
customers like you know sainsbury's and bp and barclays and
the guy who plans royal weddings So library is the
best or cheapest rate at which the british banking system
will lend money Most loans come at some premium to
lie before i risk your loans might come in something
like on a live or plus fifty basis points or
something like that so that if lie boris currently quoted
at two point two five percent interest well then the
lie bore plus fifty loan would be loaned out at
two point seven five percent interest And libras important has
been around forever and much of the world uses it
as thie pegging number two then add some risk percentage
on top of it when they quote loans to whoever
they're loaning money to That's basically it No need for 00:01:08.819 --> [endTime] any wild animals teo you know get wild