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.”
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