IBOR transition-are you ready?

Interbank Offer Rates or IBOR, including the London Interbank Offer Rate have been the benchmark rates for financial institutions to offer lending on an unsecured basis. With the industry move, globally, to Risk free rates or Alternate reference rates, banks need to start transitioning their LIBOR portfolios to these new rates.

This is not an easy task-it includes client outreach, changes to client contracts, conduct risks and systems changes, just to name a few.

It has been announced that the IBOR will be demised in phases, with USD 1 week and 2-month LIBOR and the GBP, EUR, JPY and CHF LIBOR all being demised by 31 December 2021. The remaining tenors of USD LIBOR will be published until June 2023.