LIBOR: origins, economics, crisis, scandal and reform

David Skeie

from Palgrave Macmillan

Abstract: The London Interbank Offered Rate (LIBOR) is a widely used indicator of funding conditions in the interbank market. As of 2013, LIBOR underpins more than $300 trillion of financial contracts, including swaps and futures, in addition to trillions more in variable rate mortgage and student loans. LIBOR's erratic behaviour during the financial crisis fuelled market instability, simultaneously provoking questions surrounding its credibility. Ongoing regulatory investigations have uncovered misconduct by a number of financial institutions. Policymakers across the globe now face the task of reforming LIBOR in the aftermath of the scandal and crisis.

Keywords: LIBOR; financial crisis; scandal; interbank; banking; reference rate; interest rate (search for similar items in EconPapers)
JEL-codes: E43 G01 G12 G15 G18 G21 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (12)

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Working Paper: LIBOR: origins, economics, crisis, scandal, and reform (2014)
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