Pan-European bank and financial market regulators called on Friday for a reduction in banks' influence on the Euribor rate-setting process and more regular checks to ensure the figures weren't manipulated. The European Banking Authority (EBA) and European Securities and Markets Authority (ESMA) released an 11-point plan to improve the Euribor bank-to-bank lending rate and prevent a repeat of the price fixing scandal that has engulfed such benchmarks.
Euribor and its larger counterpart Libor are Europe's key gauges of how much banks pay to borrow from their peers and are used to set the prices of swathes of financial products, from some mortgages to more complex derivatives.
They also are a key indicator of financial market tension. When the financial crisis hit in 2008, interbank rates soared as trust between banks crumbled. The future of Euribor has been under scrutiny recently because of a string of pullouts by banks, including heavyweights Rabobank and Citi, looking to protect
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