Andrew Bailey, head of the UK’s Financial Conduct Authority, expressed confidence that banks would meet a 2021 deadline for transitioning from Libor benchmarks to less risky market-based rates in new financial contracts.
However, many current contracts with inter-bank Libor rates will likely not be amended by then, said Bailey, who also is co-chair of the Financial Stability group coordinating the worldwide transition.
Asked about prospects for meeting the 2021 deadline, he said in an interview in Washington yesterday: “There shouldn’t be any need to use Libor for new products.”
Banks likely to meet 2021 Libor deadline for new contracts but not legacy, UK FCA chief Bailey says
12 April 2019 9:15am