The Monetary Authority of Singapore could terminate the Singapore Interbank Offered Rate, or Sibor, amid the scandal related to the manipulation of London Interbank Offered Rate.
Set by a panel of 12 banks and overseen by the Association of Banks in Singapore, Sibor is used as a basis for pricing all kinds of loans, from business loans to mortgages.
The monetary authority is concerned that Sibor could also be vulnerable to manipulation and, thus, has entered into talks with international banks regarding the discontinuation of Sibor, according to Wall Street Journal.
A series of reviews and investigations have been launched since last July but no decisions have been made yet as to whether to get rid of Sibor, reports the Journal.
The Journal also notes that it is unclear how banks would price loans in the event that Sibor is discontinued. One possibility is to use Libor as a reference rate.