BOE Extends Deadlines in Crackdown on Scandal-Hit Libor Rate
- Changes to collateral arrangements in lending to banks delayed
- Move highlights stubborn dependency on tainted benchmark
Pedestrians pass the Bank of England (BOE) in the City of London, U.K., on May 6.
Photographer: Simon Dawson/BloombergThis article is for subscribers only.
The Bank of England has delayed plans to encourage banks to abandon the London interbank offered rate, as efforts to phase out the discredited benchmark falter.
Moves by the BOE to use its lending operations to promote replacements will be now be put back to April 2021, from October this year. The measures involve increasing so-called haircuts applied to banks using Libor-linked collateral to borrow, in an effort to make alternatives more appealing.