The point is that somewhere along the line, there has to be an actual transaction involved - and the system for deriving the Barclays interbankborrowingrate from those transactions has to be entirely transparent.
Libor, CFAs are agreed, should reflect actual interbankborrowing rates, not some hypothetical estimated rate at which banks think they could probably borrow if they wanted to.
The British Bankers' Association said the interbank cost of borrowing overnight had fallen - a day after interest rate cuts and governments provided additional liquidity.