Reports say Singapore's central bank is in discussions to discontinue the Singapore Interbank Offered Rate (SIBOR).
The Monetary Authority of Singapore (MAS) launched a review of the SIBOR last July after abuses related to the London Interbank Offered Rate (LIBOR) surfaced.
A few months later, it broadened investigations to include some exchange rates set in the city.
Analysts say getting rid of SIBOR would force banks in Singapore to renegotiate outstanding loans, which could potentially hit earnings.
SIBOR is used as a basis for the pricing of all loans in Singapore, ranging from business loans to mortgages.
The wife and I wonder if this means reverting back to SOR (Swap Offer rate) or moving to an alternative benchmark that is less prone to abuse (is there such a thing?). More importantly, will any such change expedites the rise in mortgage rate?
Maybe our "banker" readers can shed some light on the matter...