Libor to end in 2021 as FCA says bank benchmark is unsustainable

London

LIBOR, the benchmark underpinning more than US$350 trillion of financial products, will be phased out by the end of 2021, as UK regulators and banks look to replace the scandal-tarred indicator with a more reliable system.

Andrew Bailey, the head of the Financial Conduct Authority (FCA), said on Thursday that the rate isn't sustainable because of a lack of transactions providing data. Libor became a byword for corruption after traders were caught manipulating the benchmark, leading to about US$9 billion in fines and the conviction of several bankers.