Singapore’s central bank and a group of lenders are considering putting an end to the city-state’s U.S. dollar-linked interbank lending rate as regulators worldwide probe allegations of rigged benchmark borrowing costs. The banks are reviewing how Singapore interbank offered rates are set amid probes into rate manipulation worldwide. Barclays Plc, UBS AG and Royal Bank of Scotland Group Plc have been penalised $2.6 billion for rigging the U.K.’s Libor, a scandal now set to engulf interdealer brokers such as ICAP Plc. "People are losing confidence because of manipulation," said SMU Professor of Finance (Education) Benedict Koh. "Given what has transpired, it’s important for the authorities to provide more transparency and audit by an independent body so that rates are fairly set and not biased to financial institutions that have conflict of interest.”
SUBSCRIBE TO THE SKBI MAILING LIST*
Get updates on SKBI news and forthcoming events.
*Please note that upon providing your consent to receive marketing communications from SMU SKBI, you may withdraw your consent, at any point in time, by sending your request to skbi_enquiries [at] smu.edu.sg (subject: Withdrawal%20consent%20to%20receive%20marketing%20communications%20from%20SMU) . Upon receipt of your withdrawal request, you will cease receiving any marketing communications from SMU SKBI, within 30 (thirty) days of such a request.