Updated: 07/19/2012 01:37

MAS looking into SIBOR setting process

®Copyright MediaCorp

Singapore's central bank is looking into the setting of the country's key market interest rate -- the Singapore Interbank Offered Rate or Sibor.

The Monetary Authority of Singapore or MAS said regulators in several international financial centres are looking into the setting of key market interest rate benchmarks by banks.

This is the first public comment from the MAS, following the interest rate fixing scandal in Britain which erupted last month after Barclays admitted to submitting false rates to help lower the Libor, or London Interbank Offered Rate.

Libor is a key UK benchmark rate for trillions of dollars of financial products.

Sibor is derived using a similar methodology.

It is the interest rate at which banks lend to each other and is commonly used as a benchmark rate for home loans.