Laws and Regulations
Key laws and regulations that pertain to FDIC-supervised institutions; note that other laws and regulations also may apply.
- Part 349 Derivatives — Appendix A Margin and Capital Requirements for Covered Swap Entities (also known as the Swap Margin Rule) establishes initial and variation margin requirements for covered swap entities
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Relevant Federal Register Notice incorporated into Part 349 that describes the basis and purpose of the rule and its revisions
- Margin and Capital Requirements for Covered Swap Entities permit swaps entered into prior to an applicable compliance date (legacy swaps) to retain their legacy status in the event that they are amended to replace an interbank offered rate (IBOR) or other discontinued rate
- Adjustable Interest Rate (LIBOR) Act (part of the Consolidated Appropriate Act, 2022)
- FRB Regulation Implementing the Adjustable Interest Rate (LIBOR) Act
Supervisory Resources
Frequently asked questions, advisories, statements of policy, and other information issued by the FDIC alone, or on an interagency basis, provided to promote safe-and-sound operations.
- Joint Statement on Completing the LIBOR Transition issued on April 26, 2023, reminds supervised institutions that U.S. dollar (USD) London Inter-Bank Offered Rate (LIBOR) panels will end on June 30, 2023 and reiterates that institutions with USD LIBOR exposure should complete their transition of remaining LIBOR contracts as soon as practicable. As noted in prior interagency statements, failure to adequately prepare for LIBOR's discontinuance could undermine financial stability and institutions' safety and soundness and create litigation, operational, and consumer protection risks.
- Joint Statement on Managing the LIBOR Transition issued October 20, 2021, emphasizes the expectation that supervised institutions with LIBOR exposure continue to progress toward an orderly transition away from LIBOR, includes clarification regarding new LIBOR contracts, considerations when assessing appropriateness of alternative reference rates, and expectations for fallback language
- Answers to Frequently Asked Questions about the Impact of LIBOR Transitions on Regulatory Capital Instruments (Issued July 29, 2021)
- Joint Statement on LIBOR Transition issued November 30, 2020, encourages banks to cease entering into new contracts that use USD LIBOR as a reference rate as soon as practicable and in any event by December 31, 2021
- Joint Statement on Reference Rates for Loans issued November 6, 2020, reminds institutions that the federal banking agencies are not endorsing a specific replacement rate for LIBOR for loans and of the importance of robust fallback language in loan contracts
- Joint Statement on Managing the LIBOR Transition issued July 1, 2020, highlights potential risks that may result from the expected discontinuation of LIBOR and its use as a reference rate, and encourages institutions to continue preparing for the transition
- Consumer Financial Protection Bureau LIBOR Transition Resources issued December 7, 2021, includes resources to help industry understand, implement, and comply with regulatory requirements when transitioning from the LIBOR index, including the LIBOR Transition Rule in Regulation Z.
Other Resources
Supplemental information and guidance related to safe and sound banking operations.
- FASB Accounting Standards Update No 2022-06 extended the sunset date of Update No. 2020-04 to December 31, 2024
- Secured Overnight Financing Rate Data
- Term SOFR Rates Values
- Refinitiv USD IBOR Cash Fallbacks
- Supplemental Call Report Instructions for September 2020 include a discussion of reference rate reform (starting on page 3)
- FASB Accounting Standards Update No. 2020-04 addresses reference rate reform
- FDIC’s Supervisory Insights — Winter 2018 article “Transitions in Financial Instrument Reference Rates”
- Federal Housing Finance Agency LIBOR Transition Resources
Videos/Webcasts/Teleconferences
Informational videos and recordings of prior webcasts and teleconferences.
- FFIEC Industry Outreach: LIBOR & Alternative Reference Rates webinar (requires registration to watch) (transcript and presentation)