Featured Product

    FSB Issues Progress Report on Reforming Major Interest Rate Benchmarks

    November 14, 2018

    FSB published a progress report on the implementation of its recommendations to reform major interest rate benchmarks. The report sets out the progress made on the development of overnight nearly risk-free rates (RFRs) and markets based on these rates; it also assesses progress on further reforms to interbank offered rates (IBORs). FSB will publish the next progress report in late 2019.

    The progress report considers three key areas:

    • IBORs. Although the London Interbank Offered Rate (LIBOR) has been strengthened, authorities have warned that publication of LIBOR may cease once official sector support for the benchmark is withdrawn at the end of 2021. Work has continued among the other major IBORs (EURIBOR and TIBOR) to strengthen the existing methodologies to make them more grounded in actual transactions as well as to strengthen regulatory frameworks and supervision. 

    • Alternative reference rates. In the markets facing the disappearance of IBORs, notably markets currently reliant on LIBOR, there needs to be an orderly transition to new reference rates that are sufficiently robust for such extensive use. Since the 2017 progress report, a great deal of progress has been made to identify RFRs and other alternative reference rates in the currency areas that are currently reliant on LIBOR benchmarks. Progress has also been made to plan for, and in some markets, begin to execute the transition to those RFRs.

    • Enhancing contractual robustness. Significant work continues on the part of FSB member authorities, national working groups, ISDA, and other trade associations on the important task of strengthening contractual robustness to the risk of discontinuation of major interest-rate benchmarks. This issue goes beyond derivatives markets and applies to many types of cash products, including syndicated loans, bonds, and mortgages.

    FSB started its work on the reforms to IBORs, in response to the cases of attempted manipulation and to the decline in liquidity in key interbank unsecured funding markets. In 2014, FSB set out recommendations to reform major interest rate benchmarks, such as key IBORs, and has been monitoring progress on the implementation since then.

     

    Related Links

    Keywords: International, Banking, RFR, LIBOR, Reference Rates, Interest Rate Benchmarks, IBOR, FSB

    Related Articles
    News

    EBA Finalizes Remuneration Standards for Investment Firms in EU

    EBA finalized the two sets of draft regulatory technical standards on the identification of material risk-takers and on the classes of instruments used for remuneration under the Investment Firms Directive (IFD).

    January 21, 2021 WebPage Regulatory News
    News

    ECA Recommends Actions to Enhance Resolution Planning for Banks

    EC published, in the Official Journal of the European Union, a notification that the European Court of Auditors (ECA) has published a special report on resolution planning in the Single Resolution Mechanism.

    January 20, 2021 WebPage Regulatory News
    News

    BoE Publishes Key Elements of the 2021 Stress Testing for Banks in UK

    BoE published a scenario against which it will be stress testing banks in 2021, in addition to setting out the key elements of the 2021 stress test, guidance on the 2021 stress test, and the variable paths for the 2021 stress test.

    January 20, 2021 WebPage Regulatory News
    News

    PRA Proposes Rules on Identity Verification of Depositor Protection

    PRA published a consultation paper (CP3/21) proposes rules regarding the timing of identity verification required for eligibility of depositor protection under the Financial Services Compensation Scheme (FSCS).

    January 20, 2021 WebPage Regulatory News
    News

    FSB Publishes Work Program for 2021

    FSB published the work program for 2021, which reflects a strategic shift in priorities in the COVID-19 environment.

    January 20, 2021 WebPage Regulatory News
    News

    FCA Issues Update on Move to New Data Collection Platform

    FCA announced that 50% firms have started using the new data collection platform RegData, which is slated to replace the existing platform known Gabriel.

    January 20, 2021 WebPage Regulatory News
    News

    Bundesbank Publishes Derivation Rules for Reporting by Banks

    Bundesbank published Version 5.0 of the derivation rules for completeness check at the form level, with respect to the data quality of the European harmonized reporting system.

    January 19, 2021 WebPage Regulatory News
    News

    FED Revises Capital Planning and Stress Testing Requirements for Banks

    FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.

    January 19, 2021 WebPage Regulatory News
    News

    ECB Releases Results of Bank Lending Survey for Fourth Quarter of 2020

    ECB published results of the quarterly lending survey conducted on 143 banks in the euro area.

    January 19, 2021 WebPage Regulatory News
    News

    ESAs Publish Reporting Templates for Financial Conglomerates

    ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.

    January 18, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6484