Barclays to be replaced on UAE Central Bank Eibor Panel – Source

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A pedestrian walks past the United Arab Emirate’s central bank in Abu Dhabi. Photo – Matilde Gattoni/Bloomberg

The UAE central bank is looking for an international bank to replace Barclays PLC on the 12-lender panel that sets benchmark interbank interest rates in the country, Zawya quoted a source familiar with the matter as saying.

The central bank discussed the issue in a meeting on Tuesday, after Barclays sent a letter to the regulator asking to withdraw from the Emirates Interbank Offered Rate, or Eibor, panel amid a Libor rate-fixing scandal that has resulted in fines and other sanctions from regulators in the US and Europe, the report said.

The person, who declined to be identified, told Zawya Dow Jones that the regulator is seeking a balance of four international banks and eight local ones on the panel that sets the Eibor. The central bank may turn to a local bank to fill Barclays’ position if no good international candidate comes forward, the source added.

Meanwhile, Barclays is set to stay on the panel for up to 90 days under internal central bank guidelines that stipulate a waiting period to allow time for a replacement to be found, according to a source at the country’s apex bank. There has been no suggestion that the UAE rate has been manipulated.

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