WKF – is an interest rate benchmark compliant with BMR regulation. It was approved by Financial Supervisory Authority (KNF) on November 3, 2020.
WKF can be used by banks, investment funds, bond issuers, and other market participants.
WKF represents cost of funds calculated on the basis of transactions submitted by panel banks. Transactions that are accepted for calculation of WKF are unsecured term deposits placed by customers. WKF is calculated for 1M, 3M, 6M, 12M tenors.
WKF is a non-risk-free interest rate benchmark. It reflects term interest rates of funding transactions – it has embedded credit risk factor of the banks and liquidity term spread. WKF methodology eliminates the risk of manipulation, ensures objectivity and transparency. The WKF calculation process is solely transaction-based. Calculation of WKF is based on actual term deposit transactions without an element of expert judgment.