EONIA serves as the overnight reference rate for the eurozone interbank market, reflecting the weighted average of all overnight unsecured lending transactions in the interbank market as reported by a panel of contributing banks.
The interest rate at which major banks lend to one another on the overnight market, typically utilized for short-term funding. Indexes of the average overnight rate, such as SONIA and EONIA, provide key reference rates in financial markets.
SONIA, an acronym for Sterling Overnight Index Average, is a reference rate computed as a weighted average of sterling overnight funding rates in the interbank market.
