The Monetary Authority of Singapore (MAS) plans to reprimand banks in the city-state following an 11-month review into how benchmark interest rates are set, Bloomberg reported citing five people with knowledge of the matter.
According to the report, the Singapore Foreign Exchange Market Committee plans to separately announce changes to the rate-setting process.
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However, the monetary authority isn’t planning to impose criminal sanctions on the banks or any employees.
"MAS will probably require some of the banks to set aside funds as a deposit with the central bank for a period of time and strengthen their internal controls," two unidentified sources told the publication.
Singapore expanded its review in September to include non- deliverable forwards, a derivative used by traders to speculate on the movement of currencies that are subject to domestic restrictions.
Singapore’s review into possible manipulation of the Singapore interbank offered rate follows a global crackdown on rigging of benchmark borrowing costs by banks and brokers. Barclays, UBS and RBS were fined US$2.5 billion to settle claims with US and UK financial regulators.
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