British Bankers’ Association (BBA) is poised to give up its responsibility for setting Libor should the Financial Services Authority propose a move.
Martin Wheatley, managing director at the City watchdog, will unveil changes to the way the interbank lending rate is supervised on Friday, which is expected to see the BBA relieved of its role overseeing Libor.
“If Mr Wheatley's recommendations include a change of responsibility for Libor, the BBA will support that," the BBA said in a brief statement.
In June, Libor was engulfed in a scandal that saw Barclays fined a record £290m by UK and US regulators for rigging the rate. Other banks are also expected to be fined for manipulating the rate.
Picture credit: Laura Lean