Featured Product

    BOT Working Group Charts Out Plan to Address LIBOR Cessation Issues

    October 11, 2019

    Representatives of the Association of the Bank of Thailand and the Association of international banks have established a working group to prepare for the cessation of London Interbank Offered Rate (LIBOR). BOT held a working group meeting to discuss ways to prepare for the cessation of LIBOR. The group emphasized the importance of communication and raising awareness among Thai financial market participants. By March 2020, the working group expects to finalize guidelines for various issues related to the preparations toward LIBOR cessation.

    To keep the market participants informed, the working group will publish progress report, along with conclusions about various issues; this information will be made available on the website of BOT. To make the transition as smooth and fair as possible for all parties, the working group has resolved to take actions in three key areas:

    • Modify the text In financial contracts that reference LIBOR and THBFIX such as loan agreements, derivative contracts, or the terms and conditions of debt instruments 
    • Prepare commercial banks to support the changing of LIBOR
    • Set interest rate to compensate in case of cessation of LIBOR and set direction of the reference interest rate of Thailand

    In the meantime, the working group asks market participants that have financial transactions based on the LIBOR or THBFIX interest rate to expedite the exploration of existing transaction or contract volumes. It may consult with commercial banks or counterparties in advance go adjust existing contracts in a timely manner and to assess the initial impact in various areas. The end of the use of LIBOR  by 2021 will directly affect financial transactions that reference LIBOR interest rates and indirectly affect certain other types of transactions related to THBFIX, which has a financial market in Thailand. 

     

    Related Link (in Thai)News Release

     

    Keywords: Asia Pacific, Thailand, Banking, LIBOR, THBFIX, Interest Rate Benchmarks, BOT

    Related Articles
    News

    PRA and FPC Finalize Changes to Leverage Ratio Framework in UK

    The Prudential Regulation Authority (PRA) published the final policy statement PS21/21 on the leverage ratio framework in the UK. PS21/21, which sets out the final policy of both the Financial Policy Committee (FPC) and PRA

    October 08, 2021 WebPage Regulatory News
    News

    CFPB Proposes Rule on Small Business Lending Data Collection

    The Consumer Financial Protection Bureau (CFPB) proposed to amend Regulation B to implement changes to the Equal Credit Opportunity Act (ECOA) under Section 1071 of the Dodd-Frank Act.

    October 08, 2021 WebPage Regulatory News
    News

    PRA Decides to Maintain O-SII Buffers for Another Year

    The Prudential Regulation Authority (PRA) decided to maintain, at the 2019 levels, the buffer rates for the Other Systemically Important Institutions (O-SII) for another year, with no new rates to be set until December 2023.

    October 08, 2021 WebPage Regulatory News
    News

    FSB Report Assesses Implementation of Recommendations on Stablecoins

    The Financial Stability Board (FSB) published a progress report on implementation of its high-level recommendations for the regulation, supervision, and oversight of global stablecoin arrangements.

    October 07, 2021 WebPage Regulatory News
    News

    APRA Updates Loan Serviceability Expectations for Home Lending

    In a letter to the authorized deposit taking institutions, the Australian Prudential Regulation Authority (APRA) announced an increase in the minimum interest rate buffer it expects banks to use when assessing the serviceability of home loan applications.

    October 06, 2021 WebPage Regulatory News
    News

    CPMI and IOSCO Consult on Guidance on Stablecoin Arrangements

    The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) are consulting on the preliminary guidance that clarifies that stablecoin arrangements should observe international standards for payment, clearing, and settlement systems.

    October 06, 2021 WebPage Regulatory News
    News

    EBA and EIOPA Set Out Work Priorities for 2022

    The European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA) have set out their respective work priorities for 2022.

    October 05, 2021 WebPage Regulatory News
    News

    MFSA Issues Reporting Updates and Guidance for Banks

    The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0, in addition to the reporting module on leverage under the common reporting (COREP) framework.

    October 05, 2021 WebPage Regulatory News
    News

    EC Publishes Decision on List of Equivalent Third Countries Under CRR

    The European Commission (EC) published the Implementing Decision 2021/1753 on the equivalence of supervisory and regulatory requirements of certain third countries and territories for the purposes of the treatment of exposures, in accordance with the Capital Requirements Regulation or CRR (575/2013).

    October 04, 2021 WebPage Regulatory News
    News

    EC Rule on Contractual Recognition of Write-Down and Conversion Powers

    EC published the Implementing Regulation 2021/1751, which lays down implementing technical standards on uniform formats and templates for notification of determination of the impracticability of including contractual recognition of write-down and conversion powers.

    October 04, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7552