Money Market

Money Market & Deposit Interest Rates

Money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities are traded. The money market is used by participants as a means for borrowing and lending in the short term, from several days to just under a year.
Tirana bank Treasury, Money market desk manages the liquidity of the bank through money market transactions respecting all the internal and external required ratios by the regulators.
The main money market indexes as EURIBOR, LIBOR and TRIBOR are produced by the money market rates quoted daily by a certain panel of banks.

EURIBOR

EURIBOR (Euro Interbank Offer Rate) are the rates offered to prime banks on euro interbank term deposits. The EURIBOR is based on average interest rates established by a panel of around 50 European banks (panel banks) that lend and borrow from each other.

LIBOR

LIBOR (or ICE LIBOR) (London Interbank Offer rate )is the world’s most widely-used benchmark for short-term interest rates. It serves as the primary indicator for the average rate at which banks that contribute to the determination of LIBOR may obtain short-term loans in the London interbank market. Currently there are 11 to 18 contributor banks for five major currencies (US$, EUR, GBP, JPY, CHF), giving rates for seven different maturities.

 

TRIBOR

TRIBID and TRIBOR are fixed rates in local currency calculated by the Central bank of Albania based on the quotations of the panel banks to purchase and to sell deposits in the interbank Albanian money market.

TRIBID and TRIBOR are calculated based on the quotation of the 2-8 contributor banks determined by Central Bank of Albania