FSB issues guidelines for reform on interest rate benchmarks
Basel-based body calls for development of alternative ‘nearly risk-free’ reference rates
The Financial Stability Board (FSB) called on members to develop new, "nearly risk-free" reference rates as an alternative to major interest rate benchmarks, including Libor, Euribor and Japan's Tibor – known collectively as the interbank offered rates, or ‘Ibors'.
The recommendation is one of two "general principles" for reforming the current global regime of benchmarks, laid out in a report published today by the Basel-based body.
According to the FSB, "there are certain financial transactions
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