Some experts say interbank rate manipulations may be rampant, especially in the case of the London Interbank Offered Rate (LIBOR). “During the Lehman crisis, the short-term LIBOR became incredibly low… That was the rate that banks used in order to pay deposits if they have liquidity problem, or they have no money to pay,” said Mr Bernard Lee, chief executive officer of HedgeSPA. He said that that essentially created a situation where banks were “incentivised” to mark the rate in whatever way favourable to them. 
Channel NewsAsia