Scandal-hit Libor to be phased out in 2021
Investing.com
Published Jul 27, 2017 08:35AM ET
Investing.com – The Libor is to be phased out in 2021 and replaced by a more reliable benchmark rate, the U.K. Financial Conduct Authority said Thursday.
The London interbank offered rate sets the daily benchmark rate at which banks lend to each other.
The volume of interbank lending has fallen since the 2008 financial crisis amid record low interest rates and massive stimulus programs by central banks.
A number of bankers have been convicted of manipulating the rate and multi-billion dollar fines imposed.
FCA Chief Executive Andrew Bailey said Libor has become less reliable because of a lack of active underlying markets.
“We do not think we will complete the journey to transaction-based benchmarks if markets continue to rely on Libor in its current form,” he said.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.