The index will be phased out in 2021 despite a series of reforms put in place to clean up the way the rate is set. Libor – the London interbank offered rate – was a little-known benchmark until the financial crisis and the subsequent discovery that banks had been manipulating the rate. But Bailey said that not enough activity was taking place for the benchmark rates to be priced under the new format. We have been concerned that withdrawal of panel banks would weaken the representativeness and robustness of the rate. And we have been concerned about the risk that if one or more banks leave, other panel banks would want to do the same.

Source: The Guardian July 27, 2017 16:41 UTC