As part of its ongoing work to facilitate the transition by financial market participants away from the London Interbank Offered Rate, the Alternative Reference Rates Committee today released a “starter kit” of resources on the Secured Overnight Financing Rate.
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With the London Interbank Offered Rate relied on by many banks not guaranteed to be available after 2021, ABA and the Consumer Bankers Association today welcomed the Consumer Financial Protection Bureau’s proposed changes to Regulation Z designed to facilitate the transition away from Libor.
Federal financial regulators today said they will ramp up their supervisory focus on banks’ transitions away from the London Interbank Offered Rate in 2020 and 2021.
The Alternative Reference Rates Committee today outlined how it will implement its methodologies for calculating spread adjustments on financial products that reference the London Interbank Offered Rate.
Five federal financial regulatory agencies today finalized a rule that removes the requirement for covered swap entities to collect initial margin from affiliates—an American Bankers Association-supported change that fosters systemic risk mitigation and allows swap entities to better manage liquidity.
As part of the planned transition away from the London Interbank Offered Rate—which is not guaranteed to be available after 2021—the Consumer Financial Protection Bureau today proposed a rule addressing the rate transition and Regulation Z.
While the Federal Reserve continues to support the Secured Overnight Financing Rate as the Alternative Reference Rates Committee’s preferred alternative to the London Interbank Offered Rate, Fed Chairman Jerome Powell said that Ameribor is a “fully appropriate” alternative for banks when it reflects their cost of funds.
Fannie Mae and Freddie Mac today released a Libor Transition Playbook to help mortgage industry stakeholders prepare for the transition from the London Interbank Offered Rate—which is not guaranteed to be available after 2021—to alternative reference rates.
The Alternative Reference Rates Committee today issued a set of best practices to help market participants complete preparations for the possible cessation of the U.S. dollar-denominated London Interbank Offered Rate after 2021, including recommended timelines.
As financial institutions around the globe continue preparing to transition financial contracts away from the London Interbank Offered Rate, which is not guaranteed to be sustained after 2021, BAFT—ABA’s global transaction banking subsidiary—and the International Trade and Forfaiting Association noted that the transition could have implications for master participation agreements.