Nordea head calls for reform of Danish interbank rate

Christian Clausen, group chief executive of Nordea and president of the board of the European Banking Federation has called for reform of Cibor, the interbank lending rate used by Danish banks.

The call comes following the Libor scandal that has hit financial markets and regulators globally, and forced the resignation of both the chairman and chief executive of UK bank Barclays.

Clausen made his comments to Denmark’s Børsen, subsequently carried in Sweden’s Dagens Industri , in which he said it was clear the industry needed to address any concerns that banking customers might have over the transparency and trustworthiness of Cibor.

Clausen also admitted that he could not guarantee that Cibor had not been manipulated in the same way as Libor – the interbank rate set in London.

“We have not seen any indications that there was anything wrong. But of course, in mind of what happened in London it is necessary to look through procedures, because you can’t have a system that nobody trusts. And above all you can’t have a system that is being fiddled.”

Clausen has been president of the European Banking Federation Since 2010, which means that he speaks on behalf of all European banks in their dealings with pan-European and national regulators.

Dagens Industri said that since the Libor scandal broke in the UK, there are now two investigations ongoing in Sweden into the local interbank lending rate Stibor. One of the investigations is being done by the five banks which set the Stibor rate. The other is being led by the country’s central bank, which will report in the autumn.

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