WIBOR

WIBOR, or Warsaw Interbank Offered Rate, is the reference rate at which banks lend to each other in the Polish zloty interbank market. It serves as a benchmark for a wide range of PLN-denominated financial products, including variable-rate mortgages, loans, and many interest-rate derivatives. Rates are published daily for several maturities, typically including Overnight, 1 Week, 1 Month, 3 Months, 6 Months, and 12 Months.

Calculation and administration: A panel of participating banks submits the rate at which they would lend to other banks unsecured. The final WIBOR for each tenor is derived from these submissions, usually as a trimmed average that removes outliers before computing the mean. The process is overseen by the Polish Bank Association (Związek Banków Polskich), which administers WIBOR and publishes the results.

Use and significance: WIBOR is a key reference in Poland’s financial markets, influencing the interest rates on a large share of PLN loans and a variety of derivatives. It is subject to regulatory oversight to ensure the integrity and stability of benchmark rates, with market participants relying on robust conventions and fallback arrangements in case of rate discontinuation. As such, WIBOR remains a central element of the PLN money and debt markets, reflecting the cost of unsecured interbank funding in Poland.