Libor benchmark: practice, crime and reforms
Abstract
Purpose
The purpose of this paper is to trace how and why the market-designed Libor benchmark turned bad, thereby necessitating a regulatory response.
Design/methodology/approach
The study relies on primary and secondary data in the public domain and complemented by a single-case study.
Findings
The study demonstrates how and why Libor benchmark rigging led to reforms in the UK and elsewhere.
Research limitations/implications
The study relying mainly on the secondary data analysis needs to be enhanced by further empirical-based studies.
Practical implications
Insights generated by the study suggest why it might not be worthwhile for market participants to game the system.
Social implications
Libor benchmark affects the financial system widely with varying significance to the wider public. With better regulatory oversight, its negative impact is expected to be mitigated considerably.
Originality/value
The seriousness with which the enforcement agency and judiciary now treat financial crime weakens the earlier public perception that white-collar crime is enforced differently.
Keywords
Citation
Yeoh, P. (2016), "Libor benchmark: practice, crime and reforms", Journal of Financial Crime, Vol. 23 No. 4, pp. 1140-1153. https://doi.org/10.1108/JFC-09-2015-0044
Publisher
:Emerald Group Publishing Limited
Copyright © 2016, Emerald Group Publishing Limited