ECB Pushes Foot-Dragging Banks to Pick a New Lending Benchmark
- European bank group has a shortlist of rates to replace Eonia
- ECB Holthausen says time is short to put new system in place
A railway crossing sign stands outside the European Central Bank headquarters in Frankfurt.
Photographer: Krisztian Bocsi/BloombergThis article is for subscribers only.
The European Central Bank is urging lenders to prepare for the end of key interbank lending benchmarks and accused them of being complacent until regulators stepped up the pressure.
Banks have narrowed down their options for a new system that’s protected from the kind of rigging that discredited benchmarks such as Libor and Euribor. At stake for investors, central bankers and consumers is trust in the data that’s used to value financial assets and make the ECB’s monetary policy work in practice.