Jonathan Batten

Senior Fellow
Period of Stay: 
February – July 2017
Financial Economics
Monash University, Australia
Project Title: 
The Impact of LIBOR Rigging on the International Debt Markets of Europe
Project Abstract: 

The London Interbank Offered Rate (LIBOR) is a set of key benchmark interest rates used for pricing trillions of euros of international bank loans and securities. Beginning in 2007- around the time of the Global Financial Crisis- regulators became concerned about possible manipulation of this key rate. By 2012 a number of key international banks, including Barclays, Union Bank of Switzerland and the Royal Bank of Scotland had admitted fault and were fined.

This project is intended to add further insight on the far ranging effects of LIBOR manipulation on the international debt markets of Europe. Perspectives from both banking and securities markets will be obtained. Key banking and securities market data will be sourced from the Bank for International Settlements. Statistical investigation will involve correlating these variables with relevant macroeconomic and financial data.

The project, while adding to our understanding of the process and impact of financial market manipulation, will also offer important insights into the appropriate response to financial market regulation and reform that follows the prosecution of the various financial market intermediaries.

The study is expected to generate a number of key papers that will be publishable in international economics and finance journals. The project will involve collaboration with relevant colleagues both at the Central European University as well as those based in key international agencies such as the Bank for International Settlements.