Business & Finance

ECB's Coeure: industry needs consensus on new reference rate

Published February 26, 2018 Updated February 26, 2018 12:09pm

The ECB launched its own effort late last year to develop a new overnight reference interest rate by 2020 after industry players failed to come up with an alternative to existing benchmarks. The European Commission has fined several banks over a course of several years for manipulating benchmark rates.

"For the reform to be successful and conducted in a non-disruptive manner, it is essential that this working group reaches a broad-based consensus on alternative risk-free rates and on the best approaches for incorporating their use in financial contracts," Coeure told the group asked to craft the new facility.

 

Copyright Reuters, 2018