Dubai: Barclays Plc, which paid a £290-million fine (Dh1.7 billion or $467 million) to regulators for manipulating the benchmark Libor rate, will be replaced on the United Arab Emirates’s rate setting panel by National Bank of Fujairah PSC.
The Dubai-based lender was selected to join the EIBOR (Emirates interbank offered rate) panel from Monday, according to an emailed release on Thursday from the Abu Dhabi-based central bank of the UAE. EIBOR rates are set by a panel of 12 banks on a daily basis by excluding the two highest and two lowest rates and taking the average of the rest.
Barclays’ UAE unit asked the central bank in July to exit the panel in the second-biggest Arab economy, a person familiar with the matter said July 15. Barclays paid fines to UK and US regulators in June, spurring the resignations of its chairman and chief executive officer.
Citigroup Inc, HSBC Holdings and Standard Chartered are the other foreign banks on the panel, which also includes eight local lenders including Emirates NBD PJSC and National Bank of Abu Dhabi PJSC, according to the central bank website.