Supervisory Insights is published by the FDIC's Division of Risk Management Supervision to promote sound principles and practices for bank supervision.
The Winter 2018 issue of Supervisory Insights features an article of interest to examiners, bankers, and supervisors. The London Inter-bank Offered Rate (LIBOR) is a popular reference rate for commercial loans, residential mortgages, derivatives and swaps, and other credit instruments. While LIBOR is often viewed as a reference rate used by larger financial institutions, it is also important to smaller community banks and savings institutions. Due to initiatives that could transition financial markets away from the use of LIBOR, this reference rate may not be available to financial institutions to use after 2021. “Transitions in Financial Instrument Reference Rates” discusses alternative reference rates and planning considerations for a potential change.
This issue also includes the Regulatory and Supervisory Roundup, an overview of recently released regulations and other items of interest.
Comments about this issue and suggestions for topics for future issues can be sent to SupervisoryJournal@fdic.gov or to Managing Editor Kim Lowry at email@example.com. We look forward to hearing from you.