Central bankers set up a new committee to study Libor crisis

Tim Wallace
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TOP CENTRAL bankers from around the world yesterday announced plans to set up a new committee to study key market lending rate Libor.

The policymakers regularly meet in Basel to discuss matters of mutual importance, including the Libor-rigging scandal, which has seen investigations launched into several major banks.

“The Bank of International Settlement governors have agreed to set up a group of senior officials to take forward examination of these issues, and to consult with the market in order to provide input into the wider official debate coordinated by the Financial Stability Board,” said Bank of England boss Sir Mervyn King.

Meanwhile the Global Financial Markets Association (GFMA) called for Libor and other key market interest rates to be overseen by regulators, calling for the authorities to enforce their proposed “best practice” code of conduct on the industry.

In particular, the GFMA favours greater transparency in establishing the rates.