Damaged a series of the libor benchmark interest rates by the bank according to the actual transaction reference market interest rates, which should be replaced a global organization, central bank governor said on Monday.
Barclays (), the royal bank of Scotland (RBS) (RBS. L: quote) and ubs (ubsn.vx) are fine manipulation of the libor rate, regulatory reform.
Rate is that the Banks to submit quotation, they think they can be from another bank loan interest rates. Value it is used to price trillions of dollars, including home loans, credit card, but the central bank officials hinted that its days are numbered.
"Obviously, the central bank must play an important role, support the development of alternative reference interest rates, the bank of England governor mervyn king said in a statement."
King chaired a committee of the central bank governor at the bank of international settlement, which in a report published Monday on the role that central Banks can choose to create a rate.
Trading data, the report says there is demand for better use, produce a series of benchmark interest rates for different USES.
Also said that it should be "powerful backup arrangement", covering the market of the main reference rate based on the possibility of collapse. During the financial crisis in 2007 09 reflect London interbank offered rate, the interbank market, completely dried up.
Reported that central Banks can promote the replacement rate, such as overnight interest rates and overnight index swap rate or a pledged repo rate. This refers to according to the contractual relationship between expected interest rates of bank.
Some regulators are still cautious about the rapid transition to a market-based trading, due to the huge contract still use the London interbank offered rate, and others say, such a move was overdue.
"In some cases, the central Banks or regulators may become more actively involved in production reference price," the report said.
Reuters Thomson Reuters, parent company, has been calculated and the distribution of London interbank offered rate for the London interbank offered rate, or the sponsor, the British bankers' association, since 2005.
 



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