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Malaysia to proviso out 9-month Klibor rate

[KUALA LUMPUR] Malaysia’s executive bank on Thursday pronounced it will proviso out a nine-month reign of a interbank benchmark rates, effective Jan 2018.

The preference to throw a nine-month Kuala Lumpur Interbank Offered Rate (Klibor) was taken due to “limited marketplace demand, relevancy and sufficiency of transactional information to support a rate environment process,” Bank Negara Malaysia pronounced in a statement.

Malaysia also offers 1-month, 2-month, 3-month, 6-month and 1-year Klibor rates.

“During a transitory duration commencement 1 Jan 2017, all marketplace participants with existent contractual agreements referencing a 9-month KLIBOR are approaching to examination their contracts to yield business with choice mechanisms,” a executive bank said, adding that new contracts should no longer use nine-month Klibor.

REUTERS

Article source: http://www.businesstimes.com.sg/banking-finance/malaysia-to-phase-out-9-month-klibor-rate

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