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 a bank require for unsecured money market lending in NOK to another bank. Norske Finansielle Referanser (NoRe) is from January 1 2017 administrator for Nibor. Nibor is calculated and published by Oslo Børs.

Renteutvikling. Illustrasjonsfoto

The rules

Nibor is calculated and published with maturities of one week, one month, two months, three months and six months.

The rules describe 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.

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.

As from January 1 2017 the Nibor rules are adopted by Norske Finansielle Referanser AS (NoRe), “Norwegian Financial References”. NoRe is a company established and owned by Finance Norway. The purpose of the company is to be administrator of references used in financial instruents and contracts.

Nibor Steering Group is an advisory body for NoRe. The group’s mandate is to evaluate the rules regularly and to make recommendations on approvals of panel banks. A panel bank is entitled, but not obliged, to be represented in the steering group.

Nibor Compliance Committee monitor compliance with the rules. The committee is composed of representatives from both panel banks and independent entities/institutions that are regarded as having an interest in, and a good knowledge of, how the Norwegian interbank market functions. The panel banks’ representatives must not be in the majority on the committee, and cannot at the same time be members of the Nibor Steering Group.

The Nibor rules entered into force 1 August 2011. The rules in force as from January 1 2017 was adopted by NoRe December 16 2016.

Panel banks

  • DNB Bank ASA
  • Danske Bank
  • Handelsbanken
  • Nordea Bank AB
  • SEB AB
  • Swedbank AB