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Barlcays to quit UAE panel over Libor scandal

British lender Barclays plans to pull out of the rate-setting panel for interbank lending in the United Arab Emirates because of its involvement in the Libor scandal in the UK, Reuters has reported, citing industry sources. Barclays belongs to a panel of 12 banks that quote indicative interbank lending rates in UAE dirhams. "Barclays has indicated to the UAE central bank that it wants to quit the panel, and the central bank has called for a meeting on Tuesday to discuss who will replace Barclays," a source familiar with the matter said. The lender's departure from the panel could damage its reputation in an important emerging market, though it may suffer little or no direct business impact because it will remain able to lend and borrow.