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Retail base rate

Retail calculation interest rate by currency
Currency Rate
AMD 9%
USD 3.9%
EUR 2.5%
GBP 3.7%
Retail calculation interest rate by currency
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.

AMD

AMD Retail Base Rate (RBR) is based on main and secondary indicators defined by the Bank; moreover, the secondary indicator is used only when the main indicator is not available and it becomes impossible to define the RBR for the next period.

Retail Base Rate (based on the main indicator)

AMD RBR main indicator 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. The indicator is rounded to one decimal place (e.g. 8.23 would be considered as 8.2, 8.48 as 8.5; and 8.65 as 8.7).

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

AMD RBR setup date 06.03.2020

Effective from 12.03.2020


Retail Base Rate (based on the secondary indicator)

The RBR based on secondary indicator is being published for information purpose only. The secondary indicator is being used only when the main indicator is not available and it becomes impossible to define the RBR for the upcoming period. In case the main indicator recovers or becomes available, Bank will shift to main indicator at the upcoming rate review.

AMD RBR secondary indicator is the weighted average of AMD retail and corporate deposit rates (excluding interbank deposits) 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 indicator is rounded to one decimal place (e.g. 8.23 would be considered as 8.2, 8.48 as 8.5; and 8.65 as 8.7).

The indicator is public and always available on the CBA website. See  the publication: “Interest rate of deposits attracted by commercial banks (monthly)”.

AMD secondary indicator setup date 06.03.2020

The rules of defining and regulating the RBR

RBR 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. Publications containing data older than 6 months are considered not available.

RBR is subject to change in case the difference between calculated and effective indicators for a given period is greater than 0.5 percentage point using the above-mentioned rounding rule.

Unavailability of retail base rate indicators

The retail base rate indicators 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 indicators become not available RBR will be defined on the basis of another similar indicator proposed by the Bank exclusively based on CBA standards or legislation requirements.

RBR explanatory note

The date of RBR first time setup: 06.03.2020

Main indicator.
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 both December and November 2019 was 9%, RBR calculated as the simple average of available latest 2-month data as of 06.03.2020 is setup 9%.

Secondary indicator (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 indicator 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%. 

US dollar

USD Retail Base Rate (RBR) is based on main and secondary indicators defined by the Bank; moreover, the secondary indicator is used only when the main indicator is not available and it becomes impossible to define the RBR for the next period.

Retail Base Rate (based on the main indicator)

USD RBR main indicator 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. The indicator is rounded to one decimal place (e.g. 3.23 would be considered as 3.2, 3.48 as 3.5; and 3.65 as 3.7).

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

USD RBR setup date 06.03.2020
Effective from 12.03.2020

Retail Base Rate (based on the secondary indicator)

The RBR based on secondary indicator is being published for information purpose only. The secondary indicator is being used only when the main indicator is not available and it becomes impossible to define the RBR for the upcoming period. In case the main indicator recovers or becomes available, Bank will shift to main indicator at the upcoming rate review.

USD RBR secondary indicator is the weighted average of USD retail and corporate deposit rates (excluding interbank deposits) 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 indicator is rounded to one decimal place (e.g. 3.23 would be considered as 3.2, 3.48 as 3.5; and 3.65 as 3.7).

The indicator is public and always available on the CBA website. See the publication: “Interest rate of deposits attracted by commercial banks (monthly)”.

USD secondary indicator setup date 06.03.2020

The rules of defining and regulating the RBR

RBR 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. Publications containing data older than 6 months are considered not available.

RBR is subject to change in case the difference between calculated and effective indicators for a given period is greater than 0.5 percentage point using the above-mentioned rounding rule.

Unavailability of retail base rate indicators

The retail base rate indicators 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 indicators become not available RBR will be defined on the basis of another similar indicator proposed by the Bank exclusively based on CBA standards or legislation requirements.

RBR explanatory note

The date of RBR first time setup: 06.03.2020

Main indicator. 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 is 4% and for December is 3.8%, RBR calculated as the simple average of available latest 2-month data as of 06.03.2020 is setup 3.9%.

Secondary indicator (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 indicator 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%.

Euro

EUR Retail Base Rate (RBR) is based on main and secondary indicators defined by the Bank; moreover, the secondary indicator is used only when the main indicator is not available and it becomes impossible to define the RBR for the next period.

Retail Base Rate (based on the main indicator)

€STR (Eurozone short term rate) is considered as main indicator for EUR retail base rate. RBR is the sum of €STR and fixed margin of 3%, calculated as an average of the latest available 61 months’ observations from the review date.  The indicator is rounded to one decimal place (e.g. 0.23 would be considered as 0.2, 0.48 as 0.5; and 0.65 as 0.7). 

The indicator is public and always available on the European Central Bank website.

EUR RBR setup date 06.03.2020
Effective from 12.03.2020


Retail Base Rate (based on the secondary indicator)

The RBR based on secondary indicator is being published for information purpose only. The secondary indicator is being used only when the main indicator is not available and it becomes impossible to define the RBR for the upcoming period. In case the main indicator recovers or becomes available, Bank will shift to main indicator at the upcoming rate review.

EONIA (Euro Overnight Index Average) is considered as secondary indicator of EUR retail base rate. RBR is the sum of EONIA plus fixed margin of 3%, calculated as simple average of the latest available 6 months’ observations as of review date. The Secondary Reference rate is rounded to one decimal place (e.g. 0.23 would be considered as 0.2, 0.48 as 0.5; and 0.65 as 0.7).

The indicator is public and always available on the European Central Bank

EUR RBR setup date 06.03.2020


The rules of defining and regulating the RBR

RBR is subject to semi-annual review by the Bank on 25 February and 25 August (or on proceeding business day) based on the data of latest available 6 months’ of observations published by the European Central Bank. For example, if the review date is 25 February, then for RBR calculation the daily data available for the period starting from 24 August of previous year to 24 February of current year is used. Publications containing data older than 6 months are considered not available.

RBR is subject to change in case the difference between calculated and effective indicators for a given period is greater than 0.5 percentage point using the above-mentioned rounding rule.


Unavailability of retail base rate indicators

The retail base rate indicators 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 indicators become not available RBR will be defined on the basis of another similar indicator proposed by the Bank exclusively based on CBA standards or legislation requirements.

 

RBR explanatory note

The date of RBR first time setup: 06.03.2020

Main indicator. As per RBR setup date the latest data available in European Central Bank publication for €STR index is as of 4 March 2020, hence as of 6 March 2020 the index is defined as simple average of the data of daily observations for the period from 1 October 2019 (€STR indicator setup date was 2 October 2019 for 1 October 2019 for commercial activity, thus, for first time setup EUR RBR the review period starts from 1 October 2019) till 4 March 2020, which is equal to -0.5407%, rounded to one decimal place plus fixed margin of 3%: the RBR is 2.5%.

Secondary indicator (is published for information purpose only). As per RBR setup date the latest data available in European Central Bank publication for EONIA index is as of 3 March 2020, hence as of 6 March 2020 the index is defined as simple average of the data of daily observations for the period from 5 September 2020 till 3 March 2020, which is equal to -0.4491%, rounded to one decimal place plus a fixed margin of 3%: the secondary indicator is 2.6%.

1 €STR indicator setup date was 02 October 2019 for 01 October 2019 commercial activity. Accordingly, for first time setup of EUR RBR the definition period starts from 01 October 2019.

British Pound Sterling

GBP Retail Base Rate (RBR) is based on main and secondary indicators defined by the Bank; moreover, the secondary indicator is used only when the main indicator is not available and it becomes impossible to define the RBR for the next period.

Retail Base Rate (based on the main indicator)

SONIA (GBP overnight index average) is considered as main indicator for GBP retail base rate. RBR is sum of SONIA and fixed margin of 3%, calculated as simple average of the latest available 6 months’ observations as of the review date. The indicator is rounded to one decimal place (e.g. 0.23 would be considered as 0.2, 0.48 as 0.5; and 0.65 as 0.7).

The indicator is public and always available on the Bank of England website by appropriate dates.

GBP RBR setup date 06.03.2020

Effective from 12.03.2020
 

Retail Base Rate (based on the secondary indicator)

The RBR based on secondary indicator is being published for information purpose only. The secondary indicator is being used only when the main indicator is not available and it becomes impossible to define the RBR for the upcoming period. In case the main indicator recovers or becomes available, Bank will shift to main indicator at the upcoming rate review.

Bank of England base rate is considered as secondary indicator for GBP retail base rate. RBR is the sum of Bank of England base rate plus fixed margin of 3% calculated as simple average of the latest available 6 months’ observations as of review date. The indicator is rounded to one decimal place (e.g. 0.23 would be considered as 0.2, 0.48 as 0.5; and 0.65 as 0.7).

The indicator is public and always available on the Central Bank of England website.

GBP RBR setup date 06.03.2020
 

The rules of defining and regulating the RBR

RBR 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 6 months of observations published by the Bank of England. For example, if the review date is 25th of February, then daily data available for the period starting from 24 August of previous year to 24 February of current year is used. Publications containing data older than 6 months are considered not available.

RBR is subject to change in case the difference between calculated and effective indicators for a given period is greater than 0.5 percentage point using the above-mentioned rounding rule.

 

Unavailability of retail base rate indicators

The retail base rate indicators 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 indicators become not available RBR will be defined on the basis of another similar indicator proposed by the Bank exclusively based on CBA standards or legislation requirements.

 

RBR explanatory note

The date of RBR first time setup: 06.03.2020

Main indicator. As per RBR setup date the latest data available in Central Bank of England publication for SONIA index is as of 3 March 2020, hence as of 6 March 2020 the index is defined as simple average of the data daily observations for the period from 5 September 2019 till 3 March 2020, which is equal to 0.71%, rounded to one decimal place plus fixed margin of 3%: the RBR is 3.7%.

Secondary indicator (is published for information purpose only). As per RBR setup date the latest data available in Central Bank of England publication for base rate is 0.75% which did not change during last 6 months, hence as of 6 March 2020 the secondary indicator  is rounded to one decimal place plus a fixed margin of 3%: the RBR is 3.8%.