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23 November 2017
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Libor is reaching the winter of its life

27 July 17 - RE+D Magazine
Libor is reaching the winter of its life

COMPANIES

IBI Group

Consultant - GREECE

ETAD.A.E.

Public entity - GREECE

Savills

Consultant - GREECE

Solum Property Solutions

Consultant - GREECE

PEOPLE

Antulio Richetta

Director IBI Group
Libor benchmark lending rate will be dropped by 2021, the UK's top financial regulator has announced. Andrew Bailey, head of the Financial Conduct Authority (FCA),

 

said the benchmark rate will no longer receive the backing of regulators as the industry moves to a more reliable marker, although it remains unclear how legacy contracts referencing Libor will continue to function if it becomes defunct.

Libor, the London Interbank Offered Rate, is currently referenced in $350 trillion (£268 trillion) of contracts throughout the world, according to the Bank of England, whose executive director for markets Chris Salmon this month said he wanted to move to a "less Libor-centric world" according to cityam.com.

Mr. Andrew Bailey, Chief Executive of the FCA concluded his remarks saying:

“Work must therefore begin in earnest on planning transition to alternative reference rates that are based firmly on transactions.

Panel bank support for current LIBOR until end-2021 will enable a transition that can be planned and can be executed smoothly. The planning and the transition must now begin.”

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