Information about benchmarks

For several years now, financial markets have been taking steps to regulate interest rate benchmarks (such as WIBID, WIBOR, EURIBOR and LIBOR). In the European Union, those changes are introduced in line with Regulation (EU) 2016/1011 of the European Parliament and of the Council (“Benchmark Regulation”, “BMR”). The purpose is to increase reliability and security, and to improve benchmark calculation methods.

As a result of steps taken by administrators and working groups, the calculation methods of selected benchmarks (such as WIBID, WIBOR and EURIBOR) have been changed to meet the BMR requirements. It was also decided that some benchmarks would be discontinued and replaced with new ones (for example, USD LIBOR was replaced with SOFR). To respond to potential changes introduced by administrators or working groups, banks have prepared plans in case benchmarks are discontinued or their calculations methods are significantly changed. Banks add special provisions (called “fallback clauses”) to their agreements to describe the procedure in case of the changes.

WIBID and WIBOR are the key interest rate benchmarks in the Polish financial market. They are provided in line with the method developed by GPW Benchmark S.A. On 16 December 2020, the Polish Financial Supervision Authority (KNF) authorised that company to act as the benchmark administrator.

The bank continuously monitors regulatory and legal measures taken by domestic, foreign and international authorities with respect to benchmarks. It also takes steps to ensure compliance with the BMR requirements.

In July 2022, the National Working Group for benchmark reform (NWG) started its operations. It was established in connection with the planned introduction of an alternative interest rate benchmark in Poland to be calculated on the basis of overnight deposit transactions. The NWG also published the reform roadmap.

In May 2024, the NWG started public consultations on the review and assessment of interest rate benchmarks alternative to WIBOR. The consultation paper presented the outcome of analyses carried out on the basis of latest market information to reflect the changes in the macroeconomic environment. Consultation results will serve as a basis for verifying the NWG’s decision of September 2022 on selecting the optimal replacement for WIBOR that will become a commonly applied interest rate benchmark if WIBID and WIBOR are discontinued.

Why are there plans to discontinue WIBID and WIBOR and replace them with a risk-free rate?

The Polish financial market more and more resembles other European and global financial markets. This is also the case with benchmarks. Benchmarks are used by banks to set interest rates of loans and deposits, among other things. Their reform in Poland follows the global trend of replacing IBORs with risk-free rates (RFRs).

When will the change be introduced for existing agreements?
The change process will start when the administrator or the KNF officially announces its intention to discontinue WIBOR.

Do I need to do anything in relation to the change?
No, you do not need to take any action now. If the situation changes, we will inform you sufficiently in advance.

Will products based on benchmarks other than WIBOR be cheaper?
According to the BMR, benchmarks are not changed to cut interest rates. Both the BMR and Polish legislation provide for a possibility to use a spread adjustment in relation to the benchmark replacing WIBOR. It would ensure that the economic impact of the change is as neutral as possible. The adjustment (if any) will be indicated in the Finance Minister’s Regulation or determined on the basis of fallback clauses included in agreements.