After the latest scandals, the EU Commission wants to control the so-called reference interest rates more strictly. So far, the banks have set the Libor and Euribor themselves. In the future, however, these interest rates should be based on objectively comprehensible trading data – and no longer on estimates by traders.
Financial transactions worth several hundred trillion dollars are based on the Libor alone. Every day the banks report the interest rates at which they lend each other money – indices such as the Libor and the Euribor are then determined from this information. Ultimately, almost all interest rates are based on the reference interest rate – including the interest that small savers collect for their daily money or home builders pay for their mortgage loan.
The draft law that EU Internal Market Commissioner Michel Barnier presented in Brussels, however, is not quite as strict as originally planned. Contrary to earlier considerations, the new European stock exchange regulator Esma will not become the central supervisory authority. Rather, it is planned that Esma will exchange information with the national supervisors – in Germany that would be BaFin.