€STR

The €STR is designed to reflect the cost for banks of borrowing funds on a very short-term basis (overnight) from various counterparties without providing collateral. These counterparties can include banks, money market funds, investment or pension funds, and other financial actors such as central banks.

Therefore, its scope is broader than that of the EONIA, which was only based on interbank transactions. Additionally, compared to the EONIA, a larger number of banks provide the data on actual transactions that the European Central Bank uses to calculate the €STR. This broader scope protects the €STR from manipulation and makes it a reliable reflection of the price of unsecured loans in the euro area.