Bank Push for Benchmark-Rate Delay Makes Headway in Brussels
- EU parliament, member states consider extending life of Eonia
- Rider on extension may be attached to carbon benchmarks bill
This article is for subscribers only.
Banks are finding allies in Brussels with their call for extra time to adopt a new euro benchmark lending rate as Europe tries to put a spate of rigging scandals behind it.
Some European Union lawmakers are searching for a way to give banks more time to replace the existing benchmark -- the euro overnight index average, or Eonia -- with a new rate produced by the European Central Bank. A smooth transition is critical, because about 22 trillion euros ($25.3 trillion) of derivative contracts are tied to Eonia.