Data about banks’ ability to borrow from each other should be kept anonymous and based solely on real transactions between financial institutions, according to Barclays, the only lender to be fined so far for attempting to manipulate Libor rates.
The British bank set out a series of previously unreported ideas for overhauling Libor following its £290m fine by regulators in the UK and US in June.
In its submission to the Wheatley Review of Libor, which published its recommendations yesterday, Barclays said that regulators should compel submissions from “the widest possible range of relevant market participants, in order to remove the question of incentives to participate”.
Allowing banks to submit Libor rates anonymously – a central plank of the Barclays submission – was rejected by Martin Wheatley, who headed the Government-commissioned inquiry and who is proposing a three-month delay before the borrowing rates are made public.
Barclays argued that it would have “eliminated the signalling effect of the current process”, a reference to the actions of employees who in 2008 falsified rates to discourage the notion that Barclays was finding it more difficult than other banks to fund itself.