Euriborilla

Euriborilla is a fictional benchmark interest rate used in a hypothetical European financial market. It is designed to reflect the cost of unsecured short‑term funding between large euro‑area banks on a given day and serves as a reference for a range of financial contracts in the imagined economy.

Calculation and tenor structure: Euriborilla is derived from daily submissions by a panel of major euro‑area banks for several tenors, such as one week, one month, and three months. After removing outliers, the remaining rates are averaged, using a volume‑weighted approach. The result is published on each business day by the fictional European Benchmark Authority.

History and status: Conceptualized in educational and policy discussions to illustrate benchmark design, Euriborilla is not a real‑world rate. In the narrative, it was introduced to replace older benchmarks and to strengthen governance, transparency, and resilience in the interbank market.

Usage and impact: In the fictional economy, Euriborilla serves as a reference for pricing variable‑rate loans, savings products, and many interest‑rate derivatives. It influences consumer borrowing costs, bank liquidity management, and the pricing of corporate loans within the story world.

Governance and reliability: Oversight is assigned to the European Benchmark Authority in the example, with rules governing panel participation, submissions, and dissemination. Audits, disclosure requirements, and anti‑manipulation measures are described to promote integrity and reassure market participants; however, like any benchmark, Euriborilla is subject to debate about resilience and manipulation risks.

See also: Euribor, IBOR, benchmark interest rates, interbank lending.