By Simon Miller
UK regulators are to review the Libor bank borrowing rate following months of investigations into the rate.
On Monday, officials from the Treasury, Bank of England and the Financial Services Authority met with the British Bankers’ Association (BBA) to “consider future regulatory and market developments”.
Although the BBA said that this was part of a normal review process, the meeting comes after Canadian regulators became the latest authority to investigate claims that the Libor rate had been manipulated.
In its statement, the BBA added that a “technical discussion with interested groups including users of the rate will commence shortly”.
Top UK banks including Barclays, HSBC and Royal Bank of Scotland have been investigated in a global probe into allegations that the Libor inter-bank lending rate has been influenced which could allow banks to present a better picture of their financial health.