House Financial Services Committee Ranking Member Patrick McHenry (R-N.C.) wrote to Federal Reserve Vice Chairman for Supervision Randal Quarles this week calling on the Fed to increase its efforts to help banks transition away from the London Interbank Offered Rate to SOFR, the preferred benchmark rate of the Alternative Reference Rates Committee.
As banks prepare to make the transition away from the London Interbank Offer Rate as a benchmark interest rate, the Financial Accounting Standards Board today approved staff proposals to provide relief from onerous accounting processes that would normally be required when contracts are modified.
In the clearest terms expressed by any regulator to date, Federal Reserve Vice Chairman for Supervision Randal Quarles emphasized that banks need to begin transitioning away from the London Interbank Offered Rate as a benchmark.
The Alternative Reference Rates Committee today issued its fallback language recommendations for bilateral business loans and securitizations that reference the U.S. dollar London Interbank Offer Rate.
The transition to alternative reference rates is in full swing. Here are four key steps to plan for life after Libor.
The Alternative Reference Rates Committee today issued its fallback language recommendations for floating rate notes and syndicated business loans that reference the U.S. dollar London Interbank Offer Rate.
The Alternative Reference Rates Committee today issued “A User’s Guide to SOFR,” a handbook to help market participants understand the Secured Overnight Financing Rate, its preferred alternative to the London Interbank Offered Rate, and how it can be used in cash products.
With Libor’s future uncertain, here are some steps for assessing risk, amending contracts and selecting new rates.
Regulatory agencies will expect banks to conduct thorough due diligence on the reference rates they use, but the Secured Overnight Financing Rate recommended as a replacement for the London Interbank Offered Rate has already undergone that due diligence, Federal Reserve Vice Chairman for Supervision Randal Quarles said at a public event today on the transition from Libor.
With the future of Libor uncertain beyond 2021, the FDIC’s Winter 2018 Supervisory Highlights provides an overview of steps for banks to take to help transition to an alternative reference rate.