Regulators will no longer require panel banks to contribute to the London Interbank Offered Rate (LIBOR) post 2021. Contributing panel bank departures post 2021 will undermine the stability and quality of the LIBOR benchmark. Several alternative reference rate committees have convened to find an acceptable replacement reference rate. If your organization has debt agreements with lenders or derivative contracts with counterparties that currently reference LIBOR and those contracts extend beyond 2021, now is the time to reexamine those contracts for reference rate fallback provisions or negotiate a suitable replacement reference rate. Please click here to read more about the transition away from LIBOR.
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