The British Bankers' Association (BBA) has announced changes to the way the London Interbank Offer R...
The British Bankers' Association (BBA) has announced changes to the way the London Interbank Offer Rate (LIBOR) is produced, checked and verified.
Angela Knight, chief executive of BBA, said: "Since the credit crunch began, it has become clearer to all of us that LIBOR, not the Bank of England base rate, is what really governs saving and borrowing rates on the high street. It is appropriate in this global economic downturn to ensure the continued robustness of this pillar of our financial architecture.'
The Foreign Exchange and Money Markets Committee, LIBOR's governing body and BBA have confirmed the creation of two new sub-committees for rate fixing and oversight, a three-step disciplinary procedure for rate contributors and expansion of the Foreign Exchange and Money Markets Committee to include non-contributing banks from the US and continental Europe. The paper also sets out how the data received from contributors is scrutinised.
