The National Bank of Romania (BNR) has carried out a process of revision of the rules determining the ROBID and ROBOR reference rates, in an attempt, among other things, to eliminate the calculation and publication of the reference rates for maturities below 9 months, reads a press release of this institution.
"What we took into account were the following aspects: the harmonization of the rules, by watching the evolution of the existing legal framework at European level, with the best practices in the field, in the sense of updating the terminology, especially in what concerns the entities involved in the determination and delivery of the ROBID and ROBOR reference rates; the revision of some elements of a technical nature of the operational framework of the fixing process, mainly: the narrowing of the spread between the bid and ask interest rates quoted by the participations; the expansion of the quoting obligation time slot; the increase in the maximum value of transactions related to the firm quotations provided by the participants; the elimination of the calculation and publication of the reference rate for maturities below 9 months," mentioned the press release of the central bank.
BNR also mentioned that, basically, the modifications are likely to contribute to the extra stimulation of the activity on the inter-banking monetary market, to the improvement of the price-setting mechanism, as well as a better representativeness of the established ROBID and ROBOR reference rates, by increasing their capacity of reflecting the reality on the Romanian inter-banking monetary market they intend to measure.
The ROBID and ROBOR reference rate continue to be calculated, as before, based on the firm quotations provided by the participating credit institutions.
The National Bank of Romania, in collaboration with ACI Romania - the Financial Markets Association will continue to harmonize the rules on the determination of the ROBID and ROBOR reference rates with the legal and practical developments at the European and international level, so as to align the principles, standards and procedures applicable to a central bank operating as an Administrator of the reference rates.
The new rules on the determination of the ROBID and ROBOR reference rates will be applies starting with November 11 2019.