ICAEW offers help on Libor rules
The ICAEW is developing guidelines for audits of banks' interest rate estimates in an attempt to restore confidence in London’s Libor benchmark.
In June, Barclays bank was fined a record $450m (£290m) for attempting to manipulate the London interbank offered rate (Libor), which is used globally to set the price of things ranging from credit-card fees to corporate loans.
Libor is calculated from banks' own estimates of their borrowing costs, without outside verification. Regulators reckon that Barclays was not the only bank to try to try to rig the rate and are investigating most of the world's largest banks.
Auditing banks’ Libor estimates will reassure financial markets, it is hoped.
The ICAEW is planning to publish draft guidelines by the end of this year.
“It is important to restore trust in these benchmarks, given the important role they play in establishing rates for many loans and market transactions,” said Iain Coke, the ICAEW’s head of financial services