Norway central bank sees weakness in interbank rate setting

OSLO Mon Aug 11, 2014 4:31am EDT

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OSLO Aug 11 (Reuters) - The current method for setting Nibor, the benchmark Norwegian interbank lending rate, has obvious weaknesses and reforms carried out by Finance Norway, the industry's lobby group, only partially solved the problems, the central bank said on Monday.

The central bank said that the Nibor rate should be based on an estimate of a pure crown currency rate required for loans between banks, in line with the practice used by neighbours Sweden and Denmark. (Reporting by Balazs Koranyi, editing by Terje Solsvik)

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