STIBOR is an interest rate benchmark calculated and published on each business day in Sweden. The Swedish Financial Benchmark Facility AB (SFBF) is responsible for the calculation, distribution and licensing of all STIBOR maturities.
The rate was established 1986 by the leading banks operating in Sweden to serve as a reference rate for a select few loans and derivatives. The first financial contract referenced to STIBOR was issued in October 1987, a floating rate note tied to 3-month STIBOR. As the usage of floating rate loans became more common and the derivatives market grew over time STIBOR acquired an increasingly important role in the Swedish economy. Presently STIBOR is deemed an interest rate benchmark as per the definition of an interest rate benchmark under BMR.
“STIBOR is a measure of the interest rate applied by panel banks
for unsecured lending in Swedish krona (SEK) to leading banks.”
STIBOR was designated a critical benchmark on 17 October 2018 in accordance with EU Commission Implementing Regulation (EU) 2018/1557. The Swedish Financial Benchmark Facility AB (SFBF) assumed the administration responsibility for STIBOR in April 2020.
The decision to designate STIBOR a critical benchmark was based on the assessment made by the Swedish FSA stating that STIBOR is used as a reference in the pricing of over-the counter (OTC) interest rate derivatives denominated in Swedish krona (SEK) for an outstanding notional amount of EUR 3,500 billion. Close to one fourth of SEK-denominated bonds reference STIBOR and STIBOR is used in the pricing of 75% of total loans to Swedish households and non-financial institutions. [Official Journal of the European Union – 18.10.2018]
The total value of financial instruments and financial contracts referencing STIBOR is about eight times larger than the gross national product of Sweden. STIBOR is therefore of vital importance for financial stability and market integrity in Sweden.
STIBOR ® is a registered trademark of the Swedish Bankers’ Association, registered in Sweden and other countries and regions, and used with permission.