HONG KONG, July 16 (Reuters) - Royal Bank of Scotland has ended its contribution to Singapore’s interbank lending rate panels, the third country in Asia where it has left such panels in the last month.
The move by RBS comes amid a review of its markets business and a global investigation into rate fixing at the London interbank lending panel, a probe that has prompted other banks to stop providing lending estimates.
“During the course of this review, we have decided to end our contribution to the rate setting panels for SIBOR in Singapore,” said RBS Spokeswoman Patricia Choo.
The investigation into LIBOR started late last year and seized headlines last month when Barclays paid a $453 million fine to settle with U.S. and London regulators.
RBS has already exited rate setting panels in Tokyo and Hong Kong, the Financial Times reported earlier this month.
Banks leaving these panels raises questions on the validity of the system used for setting interbank lending rates, which are used as a reference point to price other deals such as loans, bond sales and derivative transactions.