BRF Kredit throws its weight behind rethink of Cibor
Denmark’s BRF Kredit has joined those arguing for a review of the way interbank rates work in Denmark.
Both Finanswatch.dk and Børsen have reported that Sven Blomberg, chief executive of BRF Kredit, wants a review, although not necessarily because he feels it has been manipulated in the same way that Libor was manipulated by traders at UK bank Barclays.
The chief concern is the variation in liquidity represented by Cibor since the financial crisis hit. While Cibor rates may be quoted, the amount of money actually being lent between banks, is far lower than before the crisis hit.
Two weeks ago the Danish minister for Business and Growth Ole Sohn was reported to have asked the ombudsman for his own ministry to investigate whether further political intervention in the Cibor question was necessary.