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Banker Resource Center

London Interbank Offered Rate (LIBOR) Transition

The transition away from LIBOR as a reference rate benchmark poses financial, legal, operational, and consumer protection risks for institutions with exposure. Exposure is generally measured as the size of any activity and the number of counterparties or consumers with financial contracts that reference LIBOR across all products. It is important that institutions with LIBOR exposure have appropriate risk management processes in place to identify and mitigate transition risks.

Laws and Regulations

Key laws and regulations that pertain to FDIC-supervised institutions; note that other laws and regulations also may apply.

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 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 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 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 include examples of replacement indices that meet Regulation Z standards, LIBOR transition FAQs, and an updated Consumer Handbook on Adjustable Rate Mortgages (CHARM) to address the transition and remove references to LIBOR

Other Resources

Supplemental information and guidance related to safe and sound banking operations.

Videos/Webcasts/Teleconferences

Informational videos and recordings of prior webcasts and teleconferences.