Mibor use limits reform impact

Author: Ashley Lee | Published: 5 Aug 2014

India has become a global leader in reforming its interbank offered rate, the Mumbai Interbank Offered Rate (Mibor). That would be helpful if the benchmark were more frequently used.

The Reserve Bank of India (RBI) acted quickly to bring Mibor fixing in compliance with the International Organisation of Securities Commission’s (Iosco) principles for financial benchmarks.

That follows the regulator’s efforts to adhere to global reforms, and is also in line with demands for greater transparency.

RBI has taken cues from what’s happening internationally with London Interbank Offered Rate (Libor) fixing in the UK having an important influence on the thought process here, said Ashwin Ramanathan, partner at AZB & Partners. "This was a preemptive move to a more transparent and market-driven way to determine the interbank offered rate," he...


 

 

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