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Retail base rate

Retail Base Rate (RBR) values
Currency Rate
AMD 9%
USD 3.9%
EUR 2.5%
GBP 3.7%
Retail Base Rate (RBR) values
Currency AMD
Rate 9%
Currency USD
Rate 3.9%
Currency EUR
Rate 2.5%
Currency GBP
Rate 3.7%

AMD retail base rate setup date: 06.03.2020
Effective from: 12.03.2020.

USD retail base rate setup date: 06.03.2020
Effective from: 12.03.2020.

EUR retail base rate setup date: 06.03.2020
Effective from: 12.03.2020.

GBP retail base rate setup date: 06.03.2020
Effective from: 12.03.2020.

RBR general information

RBR regulations

Retail Base Rate RBR (hereinafter RBR) calculations and future modifications are based on primary and secondary reference rates* defined by the Bank.

First of all, RBR is defined based on the primary reference rate, and is equal to the primary reference rate as of the setup date. 

The secondary reference rate is used only when the primary reference rate is not available and it becomes impossible to define the RBR for the next period. 

RBR review periodicity

RBR is subject to semi-annual review by the Bank on February 25 and August 25. If the above mentioned dates are non-working days, then the proceeding business day is considered as review day.

Rule of RBR value change when the reference rate is unchanged

RBR is subject to change in case the difference between the effective RBR and calculated reference rate on the review date is equal to or greater than 0.5 percentage point. In this case RBR is matched to the new reference rate. Otherwise, the RBR remains unchanged. 

RBR definition rules when the reference rate changes

If the primary reference rate is not available on the review date or it becomes impossible to define the RBR for the upcoming period, the RBR is calculated based on the secondary reference rate. In this case RBR is matched to the secondary reference rate adjusted by the difference between the secondary and primary reference rates setup for the previous review. The RBR future review periodicity and value changes remain unaffected and are regulated as described above.

In case the primary reference rate recovers or becomes available on the successive review date, then the RBR setup is shifted to the primary reference rate despite the availability of the secondary reference rate. The RBR equals to the primary reference rate value. The RBR future review periodicity and value changes remain unaffected and are regulated as described above.

RBR notification and usage rules

In case of RBR change/adjustment the Bank is obliged to inform customers at least one month prior the new RBR effective date by sending individual notifications. The RBR changed as a result of February or August review cannot become effective later than correspondingly May 15 and November 15 of the same year. If no change has occurred as a result of the review, then the respective information is published on the Bank’s website. 

See primary and secondary reference rate section of each currency 

AMD Retail Base Rate (RBR)

Currency
AMD
RBR

9%

Currency
RBR
AMD

9%

AMD retail base rate setup date: 06.03.2020

Effective from: 12.03.2020

RBR explanatory note

Taking into consideration that as of 06.03.2020 according to CBA publication the weighted average of AMD retail deposit rates of RA banking sector with maturity of 181 days to 1 year for November and December 2019 is 9%, the primary reference rate calculated as the simple average of available latest 2-month data is setup 9%.

As of the first setup date the RBR is equal to the primary reference rate and as of 06.03.2020 is defined 9%.

Primary reference rate

AMD RBR primary reference rate is the weighted average of AMD retail deposit rates attracted solely by RA banking sector with maturity of 181 days to 1 year, calculated as simple average of the latest available 2 months’ observations as of the review date, rounded to one decimal place (e.g. 8.23 would be considered as 8.20, 8.48 as 8.50; and 8.65 as 8.70).

The information regarding interest rates is public and always available on the CBA website1. See the publication: “Volumes and interest rates of deposits attracted from and loans extended to real sector by commercial banks”.

The primary reference rate is subject to semi-annual review by the Bank on February 25 and August 25 (or on proceeding business day) based on the data of latest available 2 months of observations published by the CBA but not later than of 6 month old observations (acceptable period). Publications containing data of 6 months and older are considered not available.

Reference rate explanatory note

Primary reference rate. As per RBR setup date the latest data available in CB RA publication “Volumes and interest rates of deposits attracted from and loans extended to real sector by commercial banks” is as of December 2019. Taking into consideration that as per CBA publication as of 06.03.2020 the weighted average of AMD retail deposit rates of RA banking sector with maturity of 181 days to 1 year for November and December 2019 is 9%, the primary reference rate calculated as the simple average of available latest 2-month data as of 06.03.2020 is setup 9%.

Secondary reference rate

The secondary reference rate is being used for AMD RBR calculation only when the primary reference rate is not available and it becomes impossible to define the primary reference rate for the upcoming period. Thereafter the RBR is being based on the secondary reference rate. In case the primary reference rate recovers or becomes available on the successive review date then the RBR setup is shifted to the primary reference rate despite the availability of the secondary reference rate.

AMD RBR secondary reference rate is the weighted average of AMD retail and corporate (excluding interbank deposits) deposit rates of Armenian banking sector, being the simple average of up to 1 year and 1 year plus buckets and calculated as simple average of the latest available 2 months’ observations as of the review date. The reference rate is rounded to one decimal place (e.g. 8.23 would be considered as 8.20, 8.48 as 8.50; and 8.65 as 8.70).

The information regarding interest rates is public and always available on the CBA website1. See the publication: “Interest rate of deposits attracted by commercial banks (monthly)”.

The reference rate is subject to semi-annual review by the Bank on February 25 and August 25 (or on proceeding business day) based on the data of latest available 2 months of observations published by the CBA but not later than of 6 month old observations (acceptable period). Publications containing data of 6 months and older are considered not available.

Reference rate explanatory note

Secondary reference rate (is published for information purpose only). As per RBR setup date the latest data available in CBA publication: “Interest rate of deposits attracted by commercial banks (monthly)” is as of January 2020. Taking into consideration that as per CB RA publication as of 06.03.2020 the simple average of AMD retail and corporate deposit rates up to 1 year and 1 year plus buckets for December 2019 is 8.805% ((8.47% + 9.14%)/2), and for January 2020 is 9.30% ((9.10% + 9.50%)/2), the secondary reference rate calculated as simple average of data available for the latest 2 months and rounded to one decimal place as of 06.03.2020 is setup 9.1%.  

Unavailability of reference rates

The reference rates are considered not available under the circumstances listed below:

  • The latest date of available observations exceeds the acceptable period setup by the Bank
  • The publication of interest rate data on subject currency is discontinued
  • In other cases, stipulated by the RA legislation

If primary and secondary reference rates become unavailable RBR will be defined on the basis of another similar reference rate proposed by the Bank exclusively based on CBA standards or legislation requirements.

USD Retail Base Rate (RBR)

Currency USD
RBR 3.9%
Currency RBR
USD 3.9%

USD retail base rate setup date: 06.03.2020

Effective from: 12.03.2020

RBR explanatory note

Taking into consideration that as of 06.03.2020 according to CBA publication the weighted average of USD retail deposit rates of RA banking sector with maturity of 181 days to 1 year for November and December 2019 is 4.0% and 3.8% respectively, the primary reference rate calculated as the simple average of available latest 2-month data is setup 3.9%.

As of the first setup date the RBR is equal to the primary reference rate and as of 06.03.2020 is defined 3.9%.

Primary reference rate

USD RBR primary reference rate is the weighted average of USD retail deposit rates attracted solely by RA banking sector with maturity of 181 days to 1 year, calculated as simple average of the latest available 2 months’ observations as of the review date, rounded to one decimal place (e.g. 3.23 would be considered as 3.20, 3.48 as 3.50; and 3.65 as 3.70).

The information regarding interest rates is public and always available on the CBA website1. See the publication: “Volumes and interest rates of deposits attracted from and loans extended to real sector by commercial banks”.

The primary reference rate is subject to semi-annual review by the Bank on February 25 and August 25 (or on proceeding business day) based on the data of latest available 2 months of observations published by the CBA but not later than of 6 month old observations (acceptable period). Publications containing data of 6 months and older are considered not available.

Reference rate explanatory note

Primary reference rate. As per RBR setup date the latest data available in CB RA publication “Volumes and interest rates of deposits attracted from and loans extended to real sector by commercial banks” is as of December 2019. Taking into consideration that as per CBA publication as of 06.03.2020 the weighted average of USD retail deposit rates of RA banking sector with maturity of 181 days to 1 year for November and December 2019 is 4% and 3.8% respectively, the primary reference rate calculated as the simple average of available latest 2-month data as of 06.03.2020 is setup 3.9%.

Secondary reference rate

The secondary reference rate is being used for USD RBR calculation only when the primary reference rate is not available and it becomes impossible to define the primary reference rate for the upcoming period. Thereafter the RBR is being based on the secondary reference rate. In case the primary reference rate recovers or becomes available on the successive review date then the RBR setup is shifted to the primary reference rate despite the availability of the secondary reference rate.

USD RBR secondary reference rate is the weighted average of USD retail and corporate (excluding interbank deposits) deposit rates of Armenian banking sector, being the simple average of up to 1 year and 1 year plus buckets and calculated as simple average of the latest available 2 months’ observations as of the review date. The reference rate is rounded to one decimal place (e.g. 3.23 would be considered as 3.20, 3.48 as 3.50; and 3.65 as 3.70).

The information regarding interest rates is public and always available on the CBA website1. See the publication: “Interest rate of deposits attracted by commercial banks (monthly)”.

The reference rate is subject to semi-annual review by the Bank on February 25 and August 25 (or on proceeding business day) based on the data of latest available 2 months of observations published by the CBA but not later than of 6 month old observations (acceptable period). Publications containing data of 6 months and older are considered not available. 

Reference rate explanatory note

Secondary reference rate (is published for information purpose only). As per RBR setup date the latest data available in CBA publication: “Interest rate of deposits attracted by commercial banks (monthly)” is as of January 2020. Taking into consideration that as per CB RA publication as of 06.03.2020 the simple average of USD retail and corporate deposit rates up to 1 year and 1 year plus buckets for December 2019 is 3.56% ((2.85% + 4.40%)/2) and for January 2020 is 3.625% ((2.77%+ 4.35%)/2), the secondary reference rate calculated as simple average of data available for the latest 2 months and rounded to one decimal place as of 06.03.2020 is setup 3.6%.  

Unavailability of reference rates

The reference rates are considered not available under the circumstances listed below:

  • The latest date of available observations exceeds the acceptable period setup by the Bank
  • The publication of interest rate data on subject currency is discontinued
  • In other cases, stipulated by the RA legislation

If primary and secondary reference rates become unavailable RBR will be defined on the basis of another similar reference rate proposed by the Bank exclusively based on CBA standards or legislation requirements. 

EUR Retail Base Rate (RBR)

Currency EUR
RBR 2.5%
Currency RBR
EUR 2.5%

EUR retail base rate setup date: 06.03.2020

Effective from: 12.03.2020

RBR explanatory note

Taking into consideration that as of 06.03.2020 according to European central bank publication the average €STR index (Eurozone short term rate) over the latest available data for 01.10.20192 - 04.03.2020 months observation period is -0.5%, the primary reference rate, calculated as the sum of €STR and 3% fixed margin, is setup 2.5%. 

As of the first setup date the RBR is equal to the primary reference rate and as of 06.03.2020 is defined 2.5%. 

Primary reference rate

EUR RBR primary reference rate is the sum of average €STR index (Eurozone short term rate) over the last 6 month as of the review date and 3% fixed margin, rounded to one decimal place (e.g. 0.23 would be considered as 0.20, 0.48 as 0.50; and 0.65 as 0.70). 

The information regarding interest rates is public and always available on the European Central Bank €STR
website
1

The primary reference rate is subject to semi-annual review by the Bank on February 25 and August 25 (or on proceeding business day) based on the latest available 6 months’ data published by the European Central Bank, but not later than of 6 month old observations (acceptable period). Publications containing data older than 6 months are considered not available.

Reference rate explanatory note

Primary reference rate. As per RBR setup date the latest data available for €STR index in the European Central Bank publications is as of 04.03.2020, hence as of 06.03.2020 the index is calculated as an average of data for 01.10.2019 (€STR reference rate was first time published on 02.10.2019 for commercial activity performed on 01.10.2019, thus, 1 October, 2019 is considered as the starting point of the EUR RBR setup period)- 04.03.2020 months observation period, equal to -0.5407%, rounded to one decimal place. The primary reference rate, being equal to the sum of €STR and fixed margin of 3%, is setup 2.5%. 

Secondary reference rate

The secondary reference rate is being used for EUR RBR calculation only when the primary reference rate is not available and it becomes impossible to define the primary reference rate for the upcoming period. Thereafter the RBR is being based on the secondary reference rate. In case the primary reference rate recovers or becomes available on the successive review date then the RBR setup is shifted to the primary reference rate despite the availability of the secondary reference rate.

EUR RBR secondary reference rate is the sum of average EONIA index (EURO overnight index average) over last the 6 months as of review date and 3% fixed margin, rounded to one decimal place (e.g. 0.23 would be considered as 0.20, 0.48 as 0.50; and 0.65 as 0.70).

The information regarding indexes is public and always available on the European Central Bank EONIA
website
1.

The reference rate is subject to semi-annual review by the Bank on February 25 and August 25 (or on proceeding business day) based on the latest available 6 months’ data published by the European Central Bank, but not later than of 6 month old observations (acceptable period). Publications containing data older than 6 months are considered not available.

Reference rate explanatory note

Secondary reference rate (is published for information purpose only). As per RBR setup date the latest data available in European central bank publications for EONIA index is as of 03.03.2020, hence as of 06.03.2020 the index is defined as the simple average of the data of daily observations for the period from 05.09.2019 till 03.03.2020, which is equal to -0.4491%, rounded to one decimal place. Therefore, the secondary reference rate, being equal to the sum of EONIA index and fixed margin of 3%, is setup 2.6%. 

Unavailability of reference rates

The reference rates are considered not available under the circumstances listed below:

  • The latest date of available observations exceeds the acceptable period setup by the Bank
  • The publication of interest rate data on subject currency is discontinued
  • In other cases, stipulated by the RA legislation

If primary and secondary reference rates become unavailable RBR will be defined on the basis of another similar reference rate proposed by the Bank exclusively based on CBA standards or legislation requirements. 

GBP Retail Base Rate (RBR)

Currency GBP
RBR 3.7%
Currency RBR
GBP 3.7%

GBP retail base rate setup date: 06.03.2020

Effective from: 12.03.2020

RBR explanatory note

Taking into consideration that as of 06.03.2020 according to publications of Bank of England the average SONIA index (GBP overnight index average) over the last 6 months is 0.71%, rounded to one decimal place, the primary reference rate, calculated as the sum of SONIA and 3% fixed margin, is setup 3.7%. 

As of the first setup date the RBR is equal to the primary reference rate and as of 06.03.2020 is defined 3.7%.

Primary reference rate

GBP RBR primary reference rate is the sum of average SONIA index (GBP overnight index average) over the last 6 months as of the review date and 3% fixed margin, rounded to one decimal place (e.g. 0.23 would be considered as 0.20, 0.48 as 0.50; and 0.65 as 0.70).

The information regarding interest rates is public and always available on the Bank of England SONIA
website
1 .

The reference rate is subject to semi-annual review by the Bank on February 25 and August 25 (or on proceeding business day) based on the latest available 6 months’ data published by the Bank of England, but not later than of 6 month old observations (acceptable period). Publications containing data older than 6 months are considered not available.

Reference rate explanatory note

Primary reference rate. As per RBR setup date the latest data available for SONIA index in the publications of the Bank of England is as of 03.03.2020, hence as of 06.03.2020 the index is calculated as an average of 05.09.2019-03.03.2020 observation period, equal to 0.71%, rounded to one decimal place plus 3% fixed margin and in equal to 3.7%. 

Secondary reference rate

The secondary reference rate is being used for GBP RBR calculation only when the primary reference rate is not available and it becomes impossible to define the primary reference rate for the upcoming period. Thereafter the RBR is being based on the secondary reference rate. In case the primary reference rate recovers or becomes available on the successive review date then the RBR setup is shifted to the primary reference rate despite the availability of the secondary reference rate.

GBP RBR secondary reference rate is the sum of average Bank of England base rate over the last 6 months as of review date and 3% fixed margin, rounded to one decimal place (e.g. 0.23 would be considered as 0.20, 0.48 as 0.50; and 0.65 as 0.70).

The information regarding base rates is public and always available on the Bank of England Base rate
website
1.

The reference rate is subject to semi-annual review by the Bank on February 25 and August 25 (or on proceeding business day) based on the latest available 6 months’ data published by the Bank of England, but not later than of 6 month old observations (acceptable period). Publications containing data older than 6 months are considered not available.

Reference rate explanatory note

Secondary reference rate (is published for information purpose only). As per RBR setup date the latest data available for the base rate in the Bank of England publications has not changed within the last 6 months and is equal to 0.75%, rounded to one decimal place. Therefore, the secondary reference rate, being equal to the sum of the base rate and fixed margin of 3%, is setup 3.8%.

Unavailability reference rates

The reference rates are considered not available under the circumstances listed below:

  • The latest date of available observations exceeds the acceptable period setup by the Bank
  • The publication of interest rate data on subject currency is discontinued
  • In other cases, stipulated by the RA legislation

If primary and secondary reference rates become unavailable RBR will be defined on the basis of another similar reference rate proposed by the Bank exclusively based on CBA standards or legislation requirements. 

1 Changes of the mentioned web-link cannot have any impact on the reference rate definition rule.

€STR reference rate was initially published on 02.10.2019 for commercial activity performed on 01.10.2019, thus, 1 October, 2019 is considered as the starting point of the EUR RBR setup period