HSBC being probed for HIBOR rate fixing

HSBC declines comment on government investigation.

The Hong Kong Monetary Authority extended its investigation of possible misconduct in setting the city’s benchmark Hong Kong Interbank Offered Rate to include HSBC Holdings Plc and other as yet unidentified banks.

HKMA’s probe began by targeting Swiss bank UBS AG in December. It has since been widened to a number of banks and is continuing.

HKMA said it asked HSBC to “promptly implement” remedial measures ordered by the Monetary Authority of Singapore, the central bank, last week following a similar probe by the city-state. HSBC is the largest participant in HIBOR.

HKMA said its investigation has included millions of communication messages records so far. Because of the immense documentation involved, the probe may take a year to complete.

HKMA said in December it will also consider whether any potential misconduct may have had a material impact on the rate.

The review of banks setting the HIBOR and other benchmarks comes amid more intense global scrutiny of data submitted for key rates. Singapore last week censured 20 banks for trying to rig its rates and ordered them to set aside as much as US$9.5 billion pending improvements in their controls.