Singapore reviews rates setting amid Libor scrutiny
SINGAPORE, July 19 ― The Monetary Authority of Singapore (MAS) said today it is examining the setting of interest rate benchmarks by financial institutions operating in the city-state as central banks worldwide scrutinise the troubled Libor process.
“Regulators in several international financial centres are looking into the setting of key market interest rate benchmarks by banks. MAS is doing the same in Singapore,” a spokeswoman said in an emailed statement.
The Singapore interbank offered rate (Sibor), set by the Association of Banks in Singapore using inputs from 12 banks operating in the Southeast Asian financial centre, is widely used in the pricing of mortgages and other loans.
Central bankers and regulators will hold talks in September on whether the London interbank offered rate (Libor) used globally can be reformed or whether it is so damaged that the benchmark of borrowing costs should be scrapped.
US Federal Reserve Chairman Ben Bernanke and global financial regulator Mark Carney, who is also governor of the Bank of Canada, yesterday floated alternatives to Libor, which some bankers manipulated during the 2007-09 financial crisis. ― Reuters