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UK financial regulators suggest phasing out Libor rate benchmark from 2021

In 2021, second substitute benchmark will be used to measure bank credit risk & funding markets

Reuters  |  London 

A substitute for the widely-used Libor interest rate benchmark should be in place for banks to use by the end of 2021, the head of Britain's financial markets watchdog said. Libor, a daily rate in a range of currencies, is based on submissions from banks of interest rates they believe they would be charged by others for borrowing money. Banks have been fined billions of dollars for trying to manipulate the benchmark, forcing a rethink of its future. The benchmark is used to price financial contracts worth $350 trillion, ranging from home loans to credit cards, and Bank of ...

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First Published: Thu, July 27 2017. 19:00 IST