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Singapore: Scandal leads to rate-setting overhaul

By  |  September 4, 2013

The Monetary Authority of Singapore established a major overhaul to the nation’s rate-setting mechanism, switching to a benchmarking system following a widespread price-fixing scandal involving 20 banks.

While the regulator could not issue fines to all 20 banks, it did fine the worst offenders, named as ING Bank, RBS and UBS; the banks were ordered to issue up to $1.5 billion to the central bank for one year, without interest.

In addition to the fines, the authority overhauled rate-setting process to a benchmarking system. The Association of Banks in Singapore and the Singapore Foreign Exchange Markets Committee aided in the overhaul, say reports.

Four of the current 11 benchmarks in the nation will be discontinued, and another two will be replaced.

Full Content: Risk.net

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