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Singapore proposes changes to key financial benchmark SIBOR

FILE PHOTO: A Singapore dollar note is seen in this illustration photo May 31, 2017. REUTERS/Thomas White/Illustration/File Photo

SINGAPORE (Reuters) - Singapore published proposals on Monday to improve the way it calculates a key money market rate that is widely used to price various banking products including mortgages.

The entities that manage the Singapore Interbank Offered Rates (SIBOR) have asked for feedback from stakeholders on the proposals, which come against the backdrop of a global push to reform financial benchmarks after a number of rigging scandals.

The main changes relate to the methodology that banks use to submit inputs for the calculation of SIBOR, the expansion of the transactions used for reference, and plans to discontinue the 12-month SIBOR rate.

The entities - ABS Benchmarks Administration and the Singapore Foreign Exchange Market Committee - said they would also continue to explore longer-term alternatives to SIBOR to further develop the breadth and depth of Singapore’s money markets.

Singapore’s central bank announced on Friday it was also looking at ways to strengthen the process of determining closing prices of government bonds and bills.

Reporting by John Geddie; Editing by Kim Coghill