National Bank of Fujairah to replace Barclays on UAE rate panel

National Bank of Fujairah to replace Barclays on UAE rate panel

There has been no suggestion that Barclays tried to manipulate Eibor, which is used to price financial instruments in the Gulf's top financial centre

September 27, 2012 10:35 by Reuters

National Bank of Fujairah has been chosen to replace Barclays on the panel which sets the United Arab Emirates’ indicative interbank lending rates, banking sources told Reuters on Wednesday.

Barclays said in July it was withdrawing from the panel which determines the Emirates interbank offered rate (Eibor), weeks after it agreed to pay a $453 million fine to U.S and British regulators over manipulation of the London interbank offered rate (Libor).

There has been no suggestion that Barclays tried to manipulate Eibor, which is used to price financial instruments in the Gulf’s top financial centre.

NBF, the 11th-largest bank by market capitalisation in the UAE, beat out India’s Bank of Baroda for the spot on the 12-member panel in a vote of panel members, three banking sources with knowledge of the matter told Reuters.

NBF will assume Barclays’ position on the panel once a 90-day mandatory notice period has been served by the British bank.

The sources spoke on condition of anonymity as the information is not yet public. Officials from NBF and the central bank declined to comment.