As the international deadline for London Inter-Bank Offered Rate (LIBOR) transition approaches (31 December 2021), the MBA and its member banks met virtually on 23 November 2021 to discuss and exchange views on key aspects of the transition. Latest developments were underscored as well as the rates being adopted as from 1st January for cash, derivatives and limit-based products (such as overdrafts). Members also discussed about their general states of readiness, systems issues and fine-tuning, the adopting of SoFR term rates and Alternative Reference Rates. As per LIBOR experts, the transition away from LIBOR would herald a multi-rate world, which would be based on specificities as well as clients’ choices. The MBA has already published two sets of FAQs, a simplified version and a detailed version, addressed to retail customers/small businesses and large corporates respectively.
