Nibor – the Norwegian Interbank Offered Rate
Nibor - the Norwegian Interbank Offered Rate - is a collective term for Norwegian money market rates at different maturities. Nibor is intended to reflect the interest rate level lenders require for unsecured money market lending in NOK with delivery in two days after trade. The rules are adopted by Finance Norway and the calculation agent is Oslo Børs.
Steering group and compliance committee
Additional information about NIBOR
Nibor is calculated and published with maturities of one week, one month, two months, three months and six months.
The rules describes what the different interest rates represents, the requirements laid on the suppliers of data (the panel banks) and how the rates are to be calculated and published.
Best possible estimates
Nibor is calculated as a simple average of interest rates submitted by the Nibor panel banks for each maturity, after omitting low and high rates based on provisions laid down in the rules. The interest rates submitted by an individual panel bank shall reflect the interest rates the bank would charge on lending in NOK to a leading bank that is active in the Norwegian money and foreign exchange markets. The rates should be regarded as the best possible estimates of the market rates, but not as binding offers.
Nibor is published as an annual nominal interest rate over 360 days, as is standard in the foreign exchange market. The percentage return over the term is thus calculated by dividing the interest rate by 360 and multiplying it by the actual number of days to maturity.
There is established a steering group to regularly evaluate the rules and make recommendations on approvals of panel banks. The panel banks are approved by Finance Norway. A panel bank shall be entitled, but not obliged, to be represented in the steering group.
A compliance committee shall monitor compliance with the rules. The panel banks’ representatives must not be in the majority on the committee.
The Nibor rules entered into force 1 August 2011. The rules were last revised on 30 October 2013, entering into force on 9 December 2013. From 1 January 2014 the number of maturities has been reduced to five.
- DNB Bank ASA
- Danske Bank
- Nordea Bank Norge ASA
- SEB AB