The concerns over LIBOR (London Interbank Offered Rate) have prompted scrutiny of lending benchmark rates in many parts of the world. Closer to home, Hong Kong, Japan and Singapore announced reviews of the way interbank benchmark rates were set. In South Korea, the anti-trust agency widened a probe into possible rate-fixing.
As banks assess their roles in a global rate setting system under heavy scrutiny, they will also need to understand the weaknesses in their current processes and identify any potential breaches. In this issue, we discuss the potential consequences which banks could face should they be found to be involved in any form of manipulation of benchmark rates. Updates on regulatory, accounting and tax changes are also provided.