Swiss central bank launches new policy rate.
BANKING AND CREDIT NEWS-June 13, 2019--Swiss central bank launches new policy rate
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Global Banking News - 13 June 2019
The Swiss central bank has said that it has introduced a new policy rate in place of Libor.
The move comes following revelations that Libor had been manipulated by banks to suit their interests. Libor, which has lost credibility since the scandal, is now being replaced by the Swiss central bank after about two decades.
Libor's end date has been set for 2021.
The new SNB policy rate is to target short-term rates on the money market, central bank president Thomas Jordan said. Such rates can be measured by the transaction-based Swiss Average Rate Overnight, or SARON.
SARON has been in place for a decade and is administered by stock market operator, SIX.
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|Publication:||M2 Banking & Credit News (BCN)|
|Date:||Jun 13, 2019|
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