- M r Salmon wants the working group to spend another three months studying the option of using a secured rate, and looking at how a two to three year transition to that rate would work.
- It is already part way through being reformed in a plan that makes the Bank of England the administrator of the rate and expands the number of transactions covered by the rate.
- The Bank of England wants to restore faith in finance by replacing Libor, but has been unable to find a good alternative
- The work is being carried out by a private sector working group, monitored by the Bank of England’s executive director for markets, Chris Salmon .
- Another option is an as undefined “secured rate” based on the repo market or another market which includes collateral and so is based on secured lending.
The Bank of England has admitted it is struggling to find a viable alternative to Libor, more than four years after the crucial interest rate benchmark was discredited by the manipulation scandal.
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