Australia to Shut Bank-Rate Panel as HSBC, Citigroup Exit

Australia plans to scrap the panel that sets its benchmark interbank borrowing rate, becoming the first major developed economy to replace its rate-setting regime following the global Libor-rigging scandal.

The nation’s bank bill swap rate will be compiled directly using prices from brokers and electronic markets instead of asking a panel of banks, the Australian Financial Markets Association, which publishes the benchmark, said in an e-mailed statement today. HSBC Holdings Plc and Citigroup Inc. will stop contributing to the rate from the end of this month, AFMA said.