Euribor revamp aims to attract wider pool of banks

Administrators of Euribor, the Euro Interbank Offered Rate, are proposing a revamp to increase the number of banks contributing to its calculation. Over a decade ago, rigging scandals affected the reputation of interbank rates, with Libor being replaced largely by overnight rates compiled by central banks.
However, many financial products remain pegged to Euribor. The proposed changes aim to standardize the approach, reducing the burden on banks providing input and hopefully encouraging more banks to participate. Presently, 19 banks contribute to the rate calculation, compared to 50 in 1999. The proposed changes are expected to come into force next year.