The British Bankers' Association (BBA), which sponsors the London Interbank Offered Rate (LIBOR), met with officials from the Treasury Bank of England and Financial Services Authority (FSA) earlier this week, according to a report in the Daily Telegraph.
The BBA said in a statement that the meeting was "part of the normal reviewing processes" of LIBOR, but added that the bodies were considering "future regulatory and market rules", including the introduction of minimum liquidity standards due to come into force from 2015.
LIBOR is a daily reference rate based on the interest rates at which banks can borrow unsecured funds from other banks. It is widely used to calculate the applicable interest rate for financial instruments including currencies, variable rate mortgages and syndicated loans.
The rate-setting process is not currently considered a regulated activity under the Financial Services and Markets Act, however regulators in the US, Europe and Japan have all carried out investigations into whether banks set artificial rates during the 2008 financial crisis.