MT935 — Rate Change Advice
Interest-rate change notification on a term deposit, investment account, or revolving credit facility. Sent by the account-holding bank to the institutional client (corporate cash manager, treasurer). Key piece of interbank and corporate pricing transparency.
Purpose
MT935 informs the account or financial product holder that an interest rate has changed. Typical use cases: reference rate adjustment (EURIBOR/SOFR/SARON) on a revolving account, credit rate change on an institutional sight deposit, rate update on a syndicated credit line. For the corporate treasurer, it's the input to recompute forecasted financial costs/income.
Main tags
| Tag | Name | Status |
|---|---|---|
:20: | Transaction Reference Number | Mandatory |
:23: | Further Identification (RTRA, RTRB…) | Mandatory |
:25: | Account Identification | Mandatory |
:30: | Effective Date of New Rate | Mandatory |
:37H: | New Interest Rate (C/D for credit/debit + value in %) | Mandatory |
:72: | Sender to Receiver Information (reason, prior rate) | Optional |
Real-world example
BNP Paribas notifies ACME Corp of new 3.75% debit rate effective 2026-06-01 following ECB hike:
{1:F01BNPAFRPPAXXX0000000000}{2:I935ACMECORP01XXXXN}{3:{108:RATE935-20260519-001}}{4:
:20:RATE935-20260519-001
:23:RTRA
:25:001-887654-3-9
:30:260601
:37H:D3,75
:72:/REASON/ECB MAIN REFINANCING RATE INCREASE FROM 4,50 PCT TO 4,75 PCT
EFFECTIVE 20260601
NEW DEBIT RATE EURIBOR 3M PLUS 50 BPS = 3,75 PCT
PRIOR RATE WAS 3,50 PCT
-}{5:{CHK:3322110099AA}}Common pitfalls
- :37H: with wrong indicator:
D= debit (client pays),C= credit (client receives). Reversing causes major ALM mismatches. - :30: in the past without contractual notice: corporate contracts often require 2-30 days' notice depending on master agreement. Retroactive notification = dispute.
- No :72: with reason: treasurer doesn't know if it's a market adjustment (EURIBOR) or a commercial renegotiation.
- Confusion MT935 vs MT900/910: MT935 = rate parameter change, MT900/910 = confirmation of an individual debit/credit.