Reuters: Regulatory News: RPT-UPDATE 1-Japan banking body to tighten interbank rate monitoring

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Reuters: Regulatory News Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

RPT-UPDATE 1-Japan banking body to tighten interbank rate monitoring Jul 5th 2013, 03:18 Thu Jul 4, 2013 11:18pm EDT * Japan banking body to set up independent monitoring body * To hire outside auditors * Measures in response to global scrutiny on interbank rate setting * No wrongdoing has been found in Tokyo interbank rate so far TOKYO, July 5 (Reuters) - Japan's banking industry group said on Friday it will tighten monitoring of how its interbank lending rates are set, responding to growing public distrust in benchmark rates around the world in the wake of rate-rigging scandals. The Japanese Bankers Association said it will set up an independent monitoring body to oversee the operation of the Tokyo interbank offered rate (Tibor) and hire outside auditors to improve the transparency on how the benchmark rates are set. The industry group set up a committee in April to review the operation of Tibor in the wake of global investigations into manipulation of benchmark rates such as Libor and Euribor. The scandals have raised questions about how these benchmark rates are set, prompting authorities and banking industry bodies worldwide to overhaul rate-setting processes. For Tibor, no case of rate manipulation has been found so far. Currently, 15 banks including major Japanese banks and BNP Paribas are reference banks for Japanese yen Tibor, and 14 banks including JPMorgan Chase and Deutsche Bank submit rates for euro yen Tibor, according to the association's website. In the rate-rigging scandal involving Libor, U.S. and UK regulators so far have fined three banks, including Switzerland's UBS, a total $2.6 billion for their role. Allegations of rate manipulation have spread to Asian interbank markets. Last month, the Monetary Authority of Singapore (MAS) said traders from 20 banks, including HSBC, had tried to inappropriately influence benchmark rates in the Southeast Asian city-state. The Hong Kong Monetary Authority (HKMA) also said it was investigating HSBC, UBS and a number of other banks about possible misconduct relating to its submissions for the Hong Kong Interbank Offered Rate (Hibor). Link this Share this Digg this Email Reprints

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