What rates should a panel bank contribute to the EURIBOR fixings?
A) The offer side of the quotes it is making to other banks
B) The offer side of the quotes which it is receiving from other banks
C) The offer side of the interbank quotes it observes being made by prime banks
D) The offer side of the quotes it has actually borrowed at

Question

Quizplus · Accepted Answer

Panel banks should contribute the offer side of the interbank quotes they observe being made by prime banks. This is because EURIBOR is meant to reflect the rates at which prime banks are lending to each other, and only by observing interbank quotes can a panel bank accurately contribute to the fixings. Contributions based on the quotes a panel bank is making or receiving, or the actual rates it has borrowed at, would not be representative of the interbank market as a whole.

What Rates Should a Panel Bank Contribute to the EURIBOR