Bank of England: 'No justification' for increasing LIBOR exposure

Level of exposure poses risk to financial stability

The continued reliance of global financial markets on LIBOR is a threat to financial stability and market participants must now "accelerate" their transition preparation, the Bank of England (BoE) has warned.

In its most recent Financial Stability Report, the central bank said "there is no justification" for firms increasing their exposures to the benchmark and its Financial Policy Committee "will monitor [transition] progress closely". Update: Ex-Barclays EURIBOR riggers handed nine year sentence The London Interbank Offered Rate (LIBOR) is currently the world's most widely-used reference rate, providing a benchmark for approximately $350trn worth of financial products, according to legal firm Ashurst. However, a big shake-up is looming as bank traders were found to have been manipulat...