Tibor calculation body in works

JIJI

The Japanese Bankers Association said it will set up an organization to calculate the Tokyo interbank offered rate, or Tibor, on April 1.

The new organization, the JBA Tibor Administration, or JBATA, will take over the role of calculating Tibor from the association also known as Zenginkyo.

Zenginkyo hopes the JBATA will boost oversight of Tibor, which serves as a benchmark reference rate for interest rates charged on bank loans to corporate borrowers, to help prevent misconduct by financial institutions, following the scandal over manipulation of the London interbank offered rate, or Libor.