Featured Product

    FSB Issues Statement on Impact of COVID-19 Crisis on Benchmark Reform

    July 01, 2020

    FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition. As per the statement, the FSB Official Sector Steering Group (OSSG) recognizes that some aspects of the transition plans of firms are likely to be temporarily disrupted or delayed, while others can continue. LIBOR transition is a G20 priority and the G20, in its February 2020 communique, asked FSB to identify remaining challenges to benchmark transition by July 2020 and to explore ways to address them. FSB will publish a report on these issues later this month.

    FSB is of the view that financial and non-financial sector firms across all jurisdictions should continue their efforts in making wider use of risk-free rates to reduce reliance on interbank offered rates (IBORs), where appropriate, and to remove the remaining dependencies on LIBOR by the end of 2021. LIBOR transition remains an essential task that will strengthen the global financial system. The COVID-19 crisis highlighted that the underlying markets LIBOR seeks to measure are no longer sufficiently active. Moreover, these markets are not the main markets that banks rely on for funding. The increase in the most widely used LIBOR rates in March put upward pressure on the financing cost of those paying LIBOR-based rates. For borrowers, this offset, in large part, the reductions in interest rates in the jurisdictions where central banks have lowered policy rates. Relevant national working groups are coordinating changes to intermediate milestones in their benchmark transition programs, where appropriate, to ensure global coordination. Financial and other firms should continue to ensure that their transition programs enable them to transition to LIBOR alternatives before the end of 2021. FSB members, in collaboration with other standard-setting bodies and international institutions, will continue to monitor developments.


    Related Link: Press Release

     

    Keywords: International, Banking, Insurance, Securities, COVID-19, LIBOR, Benchmark Reforms, G20, IBORs, FSB

    Featured Experts
    Related Articles
    News

    APRA Consults on Reporting Standard for Credit Risk Management

    APRA is consulting on the reporting standard for credit risk management (ARS 220.0).

    October 28, 2020 WebPage Regulatory News
    News

    Regulators Fine Goldman Sachs for Risk Management Failures

    FCA and PRA in the UK, FED in the US, and the authorities in Singapore have fined Goldman Sachs for risk management failures in connection with the 1Malaysia Development Berhad (1MDB).

    October 23, 2020 WebPage Regulatory News
    News

    ISDA Launches IBOR Fallbacks Supplement and Protocol

    ISDA launched the IBOR Fallbacks Supplement and the IBOR Fallbacks Protocol, with both becoming effective on January 25, 2021.

    October 23, 2020 WebPage Regulatory News
    News

    Canada Hosts International Conference of Banking Supervisors

    BCBS announced that OSFI and the Bank of Canada hosted the 21st International Conference of Banking Supervisors (ICBS) virtually on October 19-22, 2020.

    October 22, 2020 WebPage Regulatory News
    News

    FCA Proposes More Measures to Help Insurance Customers Amid Crisis

    FCA proposed guidance on how firms should continue to seek to help customers who hold insurance and premium finance products and may be in financial difficulty because of COVID-19, after October 31, 2020.

    October 21, 2020 WebPage Regulatory News
    News

    EBA Issues Opinion to Address Risk Stemming from Legacy Instruments

    EBA issued an opinion on prudential treatment of the legacy instruments as the grandfathering period nears an end on December 31, 2021.

    October 21, 2020 WebPage Regulatory News
    News

    ESRB Publishes Non-Bank Financial Intermediation Risk Monitor for 2020

    ESRB published the fifth issue of the EU Non-bank Financial Intermediation Risk Monitor 2020 (NBFI Monitor).

    October 21, 2020 WebPage Regulatory News
    News

    HM Treasury Publishes Policy Statement Amending Benchmarks Regulation

    HM Treasury announced that the new Financial Services Bill has been introduced in the Parliament.

    October 21, 2020 WebPage Regulatory News
    News

    APRA Initiates Action Against a Bank for Liquidity Compliance Breach

    APRA announced that it has increased the minimum liquidity requirement of Bendigo and Adelaide Bank for failing to comply with the prudential standard on liquidity.

    October 21, 2020 WebPage Regulatory News
    News

    European Council Adopts Position on Capital Markets Recovery Package

    Ambassadors of EU member states agreed on the mandate of European Council on the Capital Markets Recovery Package, to support economic recovery from the COVID-19 crisis.

    October 21, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6011