2022-09-02 17:12, act 2022-09-02 17:41
The Steering Committee of the National Working Group (KS NGR), established in connection with the planned reform of benchmarks, chose the WIRD index as an alternative to the WIBOR interest rate benchmark, the Polish Financial Supervision Authority (KNF) informed on Friday.
As indicated in the announcement by the Polish Financial Supervision Authority, the next step of KS NGR will be the adoption of the Road Map defining the schedule of activities aimed at replacing the WIBOR reference index with the WIRD index.
WIRD is the Warsaw Deposit Market Index – a transaction index developed on the basis of deposit transactions concluded by entities submitting data with financial institutions and large enterprises.-
Ultimately, WIRD is to become a key interest rate benchmark within the meaning of the BMR Regulation, which is used in financial contracts, e.g. loans, financial instruments, e.g. debt securities or derivatives, and by investment funds, e.g. in setting management fees – explained the KNF.
The Commission noted that the selection of the index and the selection of parameters for the method of its development had been preceded by public consultations with financial and non-financial market entities, and the Committee selected three proposals: WIRD, WIRF and WRR, based on the assessment of quantitative and qualitative characteristics of individual indices.
Work on the process of designating a WIBOR substitute is provided for in the Act of July 7 this year. on crowdfunding for business ventures and assistance to borrowers, which also provides for the so-called credit holidays for people repaying a loan for an apartment. According to it, the WIBOR substitute and the date of its introduction will be determined by the ordinance.
As the KNF also informed, KS NGR also intends to recommend the standards for the application of the new risk-free-rate (RFR) ratio in banking, leasing and factoring products as well as financial instruments. (PAP)
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