How is ROBOR/IRCC calculated?

First of all, it is good to know that starting from May 2, 2019, in the case of variable interest rate loans in RON offered to individuals, the ROBOR index was replaced with a new index, namely IRCC (the reference index for consumer loans), according to GEO 19 / 2019. 🙂

IRCCit is calculated as the weighted average of interest rates with the trading volumes on the market interbank and is updated quarterly, similar to the method used for ROBOR6M. 😉

This is published every working day on website of the National Bank of Romania.

Well, if we refer to ROBOR, this is an index calculated by a formula not very complex, clearly established, under the supervision of the National Bank of Romania (BNR) and calculated with the help of the financial information company Thomson Reuters (a company that has existed since 1851 and which also calculates the EURIBOR reference interest rate used worldwide).

More exactly, ROBOR is calculated daily as arithmetic mean the interest rate quotations for RON, used by ten large banks in Romania, being the interest rate at which a bank lends liquidity to other banks. 😉

From the calculation, the extremes (the highest and lowest interest rate) are excluded to make this index as relevant as possible.

Thus, we can say about ROBOR that it is a price of money in terms of interest – a kind of reference – that is a benchmark for the cost of money for a local currency.

Yes, we know, it may sound a little more complicated. 😅 

However, it is important to know that ROBOR is determined very transparently, represents a price of money and a benchmark for the evolution of interest rates in the banking market, being calculated and published both on the Thomson Reuters platform and on the BNR website, in a clearly established manner and monitored by local / international financial institutions, by authorities. ROBOR is also announced daily by the BNR. 🙂