The European Parliament approved a two-year extension for the use of the euro overnight index average benchmark rate, which banks use to measure how much they charge for lending to each other, Reuters reported.

Eonia is set to be replaced by the euro short-term rate, or Ester, which is being developed by the European Central Bank.

As Ester will not be published until October 2019, parliament has approved the Eonia extension to smooth the transition to the new benchmark.