A tremendous shift across financial markets is taking place. The London Interbank Offered Rate (LIBOR) is being replaced. Currently the benchmark for over US$350 trillion in financial contracts worldwide, the impact of the transition from LIBOR will be far-reaching for financial services firms, businesses and customers alike. Given the scope of the impact, planning for this transition must start now and begin with a comprehensive strategy.
Key impacted businesses and functions include capital markets, commercial lending, retail banking and wealth management, investment management, insurance, market infrastructure and corporate treasury.
The LIBOR Strategy and Analytics portal is an end-to-end tech-enabled service built to extract key contract clauses, analyze LIBOR terms and provisions, deliver best-in-class remediation recommendations, and position clients to capitalize on future opportunities.
As firms start to address the impact of LIBOR transition across their organization, opportunities become apparent:
The transition from LIBOR is market, not regulator driven and institutions and territories are preparing at different rates. PwC’s LIBOR and reference rate reform specialists in territories throughout the globe can help you assess, prepare for, and execute on the transition. We work with you across the entire lifecycle of the transition, including:
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| Selected Alternative Rate | SOFR (Secured Overnight Financing Rate) |
SONIA (Reformed Sterling Overnight Index Average) |
€STR (Euro Short-Term Rate) |
| Working Group | Alternative Reference Rates Committee (ARRC) | Working Group on Sterling Risk-Free Rates | Working Group on Euro Risk-Free Rates |
| Administrator | Federal Reserve Bank of NY | Bank of England | European Central Bank |
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| Selected Alternative Rate | SARON (Swiss Average Rate Overnight) |
TONA (Tokyo Overnight Average Rate) |
| Working Group | National Working Group on Swiss Franc reference rates (NWG) | Cross-Industry Committee on JPY Interest Rate Benchmarks |
| Administrator | SIX Swiss Exchange | Bank of Japan |
| Key Features |
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To discuss the latest market & industry developments in your territory or industry, and how LIBOR transition will impact your business.
Hear PwC discuss the LIBOR phase-out and steps companies can — and should — take now.
LIBOR transition has been a hot topic for the corporate treasury community for at least the past year. Although uncertainty over new reference rates has meant the corporate uptake has been relatively limited. A number of recent announcements should remind the treasurer that LIBOR’s likely eventual end date is fast...
Financial services regulatory insights at a glance.
As from the end of December 2021, financial institutions will no longer be compelled to submit LIBOR rates, as the market transitions fully to RFRs such as SONIA, and that’s just the last of several LIBOR deadlines. The Bank of England has also said that by the end of Q3 2020, lenders should be in a position to offer...
