The British Bankers’ Association (BBA) is dropping its role in the setting of LIBOR. The move comes four years after questions were first raised about whether banks were lying in their submissions to the rate setting process, reports Financial Times.
The reforms, which come out of a review led by Martin Wheatley, managing director of the Financial Services Authority, pave the way for government regulation of interbank rates that serve as the benchmark for more than $350 trillion in global contracts, adds Financial Times.
In a statement on its website, the BBA said, “The BBA seeks to work with the Wheatley review team as they complete their consultation on the future of LIBOR. If Mr. Wheatley’s recommendations include a change of responsibility for LIBOR, the BBA will support that.”