Decision on Submitting Data on Interbank Money Market Loans to the National Bank of Serbia

RS Official Gazette, No 28/2018 Pursuant to Article 18, paragraph 1, item 3 and Article 68 of the Law on the National Bank of Serbia (RS Official Gazette, Nos 72/2003, 55/2004, 85/2005 – other law, 44/2010, 76/2012, 106/2012, 14/2015 and 40/2015 – CC decision), the Governor of the National Bank of Serbia adopts the following DECISION ON SUBMITTING DATA ON INTERBANK MONEY MARKET LOANS TO THE NATIONAL BANK OF SERBIA Basic provisions

1. This Decision sets forth the obligation of banks to submit data on interbank money market loans to the National Bank of Serbia (NBS), as well as the manner of submitting such data, for the purpose of calculating and publishing the interest rates based on such loans.
2. Certain terms, within the meaning of this Decision, have the following meaning: – an interbank money market loan means an unsecured lending of dinar assets of one bank to another bank in the money market in the Republic of Serbia; – an overnight loan means a loan in the interbank money market with a repayment term by the end of the business day following the day when the loan was granted; – a longer maturity loan means a loan in the interbank money market with a repayment term longer than that of the overnight loan; – the interest rate BEONIA (Belgrade OverNight Index Average) means the weighted average interest rate on overnight interbank loans; – a bank means a bank seated in the Republic of Serbia, licensed by the NBS, in accordance with the law governing banks; – a business day means a day on which interbank payments with the NBS are performed, in accordance with regulations on the NBS RTGS and clearing system.
3. Banks shall submit the Report on Overnight Interbank Loans to the NBS on each business day for the current business day, at the latest within 30 minutes from the lapse of the time period for executing transfer orders as specified in operating rules of the real time gross settlement (Annex 1 – BEONIA form), for overnight loans and the Report on Interbank Longer Maturity Loans (Annex 2 – MNT form), for longer maturity loans. The Reports in the forms referred to in paragraph 1 hereof (which are enclosed herewith and are integral hereto) shall contain data on all overnight loans and/or all longer maturity loans extended by a bank to another bank

2 and taken by a bank from another bank, including the business name of the borrowing and/or lending bank, loan amount and the interest rate on the loan. For the longer maturity loans, it shall also include the date of settlement and the maturity date. 4. The minimum loan amount in the interbank money market for which banks are required to submit the data referred to in Section 3 hereof is one million dinars. 5. In the Reports referred to in Section 3 hereof, banks are required to specify the interest rate level per annum, in percentage terms, with two decimal places. If banks agree to calculate the interest rate on the overnight loan and/or longer maturity loan by applying the simple interest rate calculation, taking into account the actual number of days in the maintenance period and a 360-day year (actual/360 days), and the interest rate is agreed at the annual level, they shall submit data on the agreed interest rate. If banks agree on another method of interest rate calculation or on monthly interest rate, they shall calculate and disclose the interest rate applied in such calculation as the interest rate that would have been obtained by simple interest calculation, so that interest amounts obtained by applying one or the other rate, depending on the selected calculation method, are equivalent. 6. Banks shall submit the data referred to in Section 3 hereof to the NBS electronically, in a format and manner prescribed by the special guidelines on electronic submission of data to the NBS. 7. If a bank fails to submit the data referred to in Section 3 hereof or fails to submit correct data, the NBS shall take measures against such bank in accordance with law and regulations of the NBS. Processing and publishing of data on interbank money market loans Calculating and publishing of the BEONIA interest rate 8. Based on the data from the Report on Overnight Interbank Loans, the NBS shall calculate the BEONIA interest rate as the weighted average of interest rates on overnight interbank loans, expressed with two decimal places. 9. The NBS shall publish data on the level of the BEONIA interest rate on its website, on each business day, at the latest within 45 minutes from the lapse of the deadline referred to in Section 3, paragraph 1 hereof. It can also publish such data on Reuters and Bloomberg e-services.

3 10. If on a particular business day for which the Report on Overnight Interbank Loans is submitted there are no overnight interbank loans, the NBS shall publish data on the level of the BEONIA interest rate for the last business day when such loans were extended. If in the uninterrupted period of six and more business days there are no overnight interbank loans, the NBS shall, starting from the sixth business day, publish data on the level of the BEONIA interest rate, calculated based on quotations of at least seven banks, obtained on NBS’s request. The quotations referred to in paragraph 2 hereof are data on interest rates at which banks are willing to take and/or grant overnight loans. The NBS shall send to banks the quotation request referred to in paragraph 2 hereof each business day between 3 and 4 pm. In the event referred to in paragraph 2 hereof, the BEONIA interest rate shall be calculated as the arithmetic mean (MID) of the average interest rate at which banks are willing to take overnight loans (BID) and the average interest rate at which banks are willing to grant overnight loans (ASK), and shall be expressed with two decimal places. The average interest rate at which banks are willing to take overnight loans (BID) shall be calculated as the arithmetic mean of all quoted interest rates, after the exclusion of the lowest and the highest quoted rate. The average interest rate at which banks are willing to grant overnight loans (ASK) shall be calculated as the arithmetic mean of all quoted interest rates, after the exclusion of the lowest and the highest quoted rate. If in the uninterrupted period of six and more business days there are no overnight interbank loans and the NBS does not receive quotations of at least seven banks, the NBS shall publish data on the level of the BEONIA interest rate which are, in line with this Decision, published on the previous business day. Calculating and publishing of interest rate for longer maturity loans 11. The NBS shall classify the submitted data from the Report on Interbank Longer Maturity Loans according to type of maturities given in Annex 3 (which is enclosed herewith and is integral hereto) and shall calculate interest rates for each of such maturities as the weighted average of interest rates on loans of such maturity between banks, which shall be expressed with two decimal places. 12. The NBS may publish aggregate data on the volume of longer maturity loans and the average interest rate on its website and/or Reuters

4 and Bloomberg e-services, and it can also make them available to banks through appropriate application. Processing and publishing of other data relating to interbank money market loans 13. The NBS may also process and publish other data relating to interbank money market loans. Final provisions 14. As of the date of entry into force hereof, the Decision on Submitting Data on Overnight Interbank Loans to the NBS (RS Official Gazette, Nos 125/2007 and 62/2013) shall cease to be valid. 15. This Decision shall be published in the RS Official Gazette and shall enter into force on 1 January 2018. D. No 2 Governor 5 April 2018 of the National Bank of Serbia Belgrade Dr Jorgovanka Tabaković, sign.