Prague interbank offered rate (PRIBOR)
What is the Prague interbank offered rate (PRIBOR)?
The Prague interbank offered rate (PRIBOR) is the average interest rate at which lending takes place on the Czech Republic's interbank money market. Six banks provide data to enable a daily calculation.
Where have you heard about the Prague interbank offered rate (PRIBOR)?
As an investor, you may well have heard of it if you are interested in investing in central Europe. The Czech Republic has a modern, growing economy that offers many investment opportunities.
In 2015, the country's finance ministry ordered an inquiry into whether PRIBOR had been manipulated. Control of PRIBOR was moved to a specialist company in 2017.
What you need to know about the Prague interbank offered rate (PRIBOR).
The Prague interbank offered rate (PRIBOR) is a reference or benchmark rate signalling the average rate at which banks are prepared to lend to each other at any one time. It was formerly administered by the Czech Financial Markets Association, but in 2015 there were suggestions that some of those banks providing reference rates were manipulating PRIBOR for their own gain. Ministers ordered the central bank to investigate and the result was that, in July 2017, PRIBOR was transferred to the Czech Financial Benchmark Facility, operated by Global Rate Set Systems, the international rate-setting specialist.
Find out more about the Prague interbank offered rate (PRIBOR).
PRIBOR is not the only benchmark to have faced accusations of manipulation. The London interbank offered rate (LIBOR) is another. Learn more about LIBOR here.