EURO INTERBANK OFFER RATE EURIBOR

The rate of interest at which panel banks borrow funds from other panel banks, in marketable size, in the EU interbank market.

In other words, this is the rate at which participant banks within the European Union money market will lend to another participant bank in the EU money market. Because banks involved with Euribor are the largest participants in the EU money market, this rate has become the benchmark for short-term interest rates.