InterbankenRaten

InterbankenRaten are the interest rates at which banks lend to one another on wholesale funding markets. They reflect the supply of and demand for reserves in the banking system and thus indicate liquidity conditions and perceived credit risk among financial institutions. InterbankenRaten serve as reference points for a wide range of financial contracts, from corporate loans and mortgages to derivatives, and help determine the cost of funding for banks and borrowers.

InterbankenRaten can be established on an unsecured basis, where loans depend on the borrower's creditworthiness, or on a secured basis, such as through repurchase agreements where collateral backs the funds. The rate and tenor—overnight, one week, one month, and so on—determine the maturity of the funding. Historically, many benchmarks were derived from banks’ submitted offers or quotes (for example EURIBOR and LIBOR). In recent years, reforms have moved toward using more actual transaction data and toward adopting near risk-free rate benchmarks, including SOFR for the U.S. dollar, SONIA for the British pound, and €STR for the euro area.

InterbankenRaten act as a barometer of systemic liquidity and are observed by central banks and policymakers. Central banks influence them through monetary policy rates and liquidity operations, which shape banks’ willingness to lend to one another. Because a large portion of lending agreements and financial instruments reference these rates, shifts in InterbankenRaten can propagate through wholesale markets and affect the overall cost of funding in the economy.

Notable examples include EURIBOR in the euro area and, in the transition away from LIBOR, the adoption of risk-free rate benchmarks such as SOFR, SONIA, and €STR.