ASIC funded to combat bank rate rigging

ASIC has warned it has a $50 million enforcement war chest for banks trying to rig the bank bill swap rate.

The corporate watchdog has warned it has a $50 million war chest to pursue any bank trying to rig the rate financial institutions use to borrow from each other.

Australian Securities and Investments Commission deputy chairman Peter Kell issued the warning during a Senate estimates hearing in Canberra, saying it is prepared to target any bank trying to manipulate the bank bill swap rate.

"We have a war chest, and we will use it," he said.