ESTER: Difference between revisions

Revision as of 08:22, 16 February 2022

Interest rates - reference rates.

ESTER is interest rate calculated by the European Central Bank that reflects wholesale overnight borrowing costs for eurozone banks.

It has been designed as the eurozone replacement for EONIA.

ESTER is an acronym for Euro Short Term Rate.

ESTER is also sometimes written as '€STR'.

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 ''Interest rates - reference rates.''
-ESTER is an acronym for Euro Short Term Rate.
+ESTER is interest rate calculated by the European Central Bank that reflects wholesale overnight borrowing costs for eurozone banks.
-It is administered by the European Central Bank (ECB), with formal publication from October 2019.
+It has been designed as the eurozone replacement for EONIA.
-ESTER is designed to reflect the wholesale euro unsecured overnight borrowing costs of euro area banks, and to complement existing benchmark rates produced by the private sector, serving as a backstop reference rate.
+ESTER is an acronym for Euro Short Term Rate.
-The ECB recommends that market participants replace EONIA with the ESTER for all products and contracts, making ESTER their standard reference rate.
 ESTER is also sometimes written as '€STR'.
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 *[[Euro LIBOR]]
 *[[European Central Bank]]
+*[[Eurozone]]
 *[[Fallback]]
 *[[O/N]]