Central banks seeking a role in Libor after the scandal

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The Independent Online

The world's most powerful central bankers are preparing to impose themselves on the financial sector interest rate reporting framework in response to the Libor scandal.

The Bank for International Settlements, which brings together senior central bankers, said yesterday that there was an "important role" for the official sector in the development of a trustworthy rates reporting regime.

Barclays, Royal Bank of Scotland and the Swiss group UBS have all been fined over the past 12 months for manipulating Libor, and regulators are still investigating other banks.

Sir Mervyn King, the Governor of the Bank of England and chairman of the BIS, said the reporting regime could no longer be left solely in the hands of the private banks. "It is clear that central banks must play an important role in supporting the development of alternative reference rates," he said.

A BIS working paper laid out a range of options for reform of the regime.