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Life after Ibor

Jan 01, 2019 - The Banker

WHAT IS HAPPENING? At a recent conference, a senior UK regulator warned bankers not to run their businesses on the basis that the London Interbank Offered Rate (Libor) might somehow continue beyond 2021, and that they must focus on making alternative (nearly) risk-free reference rates (RFR) work.

After 2021 the UK's Financial Conduct Authority will no longer compel banks to support London's interbank offered rates (Ibors), meaning they could just cease to exist. This would be a huge proble...