Friday 30 October 2015
Bank of England says it will map out move to Libor alternative in 2016
From Reuters –
“The Bank of England will spell out next year how markets can migrate to a new "risk-free" interest rate benchmark after banks were fined billions of dollars for trying to rig Libor, the existing benchmark, a senior BoE official said on Wednesday.
Chris Salmon, the BoE's executive director for markets, said Libor, or the London Interbank Offered Rate, a benchmark for interest rates that banks charge each other, remains too prevalent.
Formerly overseen by the British Bankers' Association (BBA), Libor rates have come under scrutiny after a number of traders were accused of colluding to rig the rate. The rates are calculated through an "honor system" in which a panel of banks report their estimated costs of borrowing from each other in different currencies over differing periods.”
Read more>>
Labels:
Bank of England,
LIBOR,
rate rigging,
UK