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UK watchdog tells banks to show plans for ending Libor use

Reuters  |  LONDON 

By Huw JonesLONDON (Reuters) - Banks must show how they plan to shift from using Libor in financial contracts to "risk-free" interest rate benchmarks by the end of 2021, Britain's markets watchdog said on Thursday.Banks have been fined $9 billion for trying to rig Libor, a measure of borrowing costs among lenders, and the Bank of England (BoE) has launched a supposedly risk-free alternative, its SONIA overnight rate, for use in contracts.Risk-free rates are considered harder to manipulate as they are based on actual market transactions, as opposed to quotes submitted by "panel" banks to ...

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First Published: Thu, July 12 2018. 18:29 IST