SINGAPORE: Singapore wants to ensure their banking sector is not setting its interbank rates illegally and has called on the country's banks to review how that rate is set as regulators across the planet fear widespread corruption of the Libor system. “We've directed the banks to take a look at their processes and have an independent review done,” Teo Swee Lian, deputy managing director of the Monetary Authority of Singapore (MAS), said at a press conference. Regulators in Singapore and other major financial centers are looking into reforming interbank borrowing rates following suspected rigging of the London interbank offered rate (Libor). The result of the new controversy over banks has left consumers and regulators uncertain over the banking sector once again. Teo said the MAS's main concerns focus on the Singapore interbank offered rate (Sibor) and the Singapore swap offer rate (SOR), the two main benchmarks used to determine mortgage loans in the city-state. But all rates set by a similar process will be reviewed, he added. Last week, Royal Bank of Scotland said it had removed itself from the Association of Banks in Singapore (ABS) panel that sets the city-state's benchmark interbank rate. The MAS said it was confident there would be no further withdrawals of banks from the ABS panel.
