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Actually, there is very little incentive to manipulate SIBOR simply because it is mostly a bank lending rate and is not used commonly in derivative contracts like LIBOR is. In other words, the LIBOR market is a casino, the SIBOR market isn't.
What may be less known is SOR (Swap Offered Rate). This is used in SGD derivative contracts but is much harder to manipulate because the fixing is based on a very liquid and transparent USDSGD fx forward rate. SOR is also fixed by ABS.
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The Sibor is around 0.87% now, still low for property owner...
Sibor jumps 5.6% on jitters ahead of Fed's policy statement
31 Jul 2015 09:00
By Grace Leong
Jitters ahead of the outcome of a key United States Federal Reserve meeting spurred a 5.6 per cent jump in a benchmark Singapore interest rate. The three-month Singapore Interbank Offered Rate (Sibor) - used to price home loans and other consumer lending - surged to 0.87234 per cent yesterday.
On Tuesday, the rate stood at 0.82596 per cent. It has fallen almost 15 per cent from its highest point this year of 1.02705 per cent on April 9.
But it is still nearly double its level at the start of the year.
...
Source: Straits Times
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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As far as banks/loan are concern, the house always win.
When spreads are good, there are some incentives for borrowers.
When spreads are not so good, you have the banks take the incentives away(lawyer's fee) and charge facility fees/etc etc
Good money is made on credit cards as interest rates are very high, default is low plus the transaction fees earn. Our credit card interest is much higher than in U.K and the U.S.
Singapore is a very lucrative market for banks, no doubt.