AsianBankingFinance: LIBOR transition ー A trigger for re-thinking IT platforms

Create a vendor selection project & run comparison reports
Click to express your interest in this report
Indication of coverage against your requirements
A subscription is required to activate this feature. Contact us for more info.
Celent have reviewed this profile and believe it to be accurate.
2 December 2020

The London Interbank Offered Rate (LIBOR) is a series of benchmark interest rates and has been called the “world’s most important number”. It is a globally recognized base rate for pricing loans, debt, and derivatives. As a key part of the financial services infrastructure, more than $240 trillion in products reference LIBOR.

As its underlying transactions have diminished, regulators have announced a target date to replace LIBOR and begun the process of identifying and creating alternative rates. However, these rates are structurally different from LIBOR, and it is unclear how existing products referencing it will change, and what new products will emerge. There is the possibility of significant customer and economic impact and uncertainty over how this will develop.

It may not be the ultimate goal, but in 2021 the global financial markets will experience a major transition. For APAC's financial markets, 2021 may still seem a long way off, but given the magnitude of the transition and its impact on financial markets, the timing is right for financial institutions to start mobilizing everything they need to do to prepare for it already.

sign in or sign up to read more

News article details

Capital Markets, Corporate Banking, Life & Health Insurance, Property & Casualty Insurance, Retail Banking, Wealth Management
Media Type
News Articles
Geographic Focus