Nation to publish monthly bank lending rate in wake of scandal

Korea will begin publishing its new key interest rate for bank lending this month after the country’s antitrust agency probed financial institutions in July for suspected manipulation of the current benchmark.

The Korea Federation of Banks will post the so-called short-term Cost of Funds Index starting Dec. 20, the Financial Services Commission said in an e-mailed statement today. The rate will be published every Wednesday.

Korea announced the adoption of the so-called Cofix rate in August after the Fair Trade Commission investigated banks and brokerages for possibly rigging certificate-of-deposit rates. Global regulators are scrutinizing borrowing benchmarks, with Barclays receiving a record fine in June for attempting to manipulate the London interbank offered rate.