Fed examining big banks’ plans for Libor shift, Quarles says

5 June 2019 9:21am
The US Federal Reserve has started to examine large banks’ plans to shift from Libor to another interest-rate benchmark and will expect growing readiness from these firms over the next two-and-a-half years, said Randal Quarles, the Fed’s vice chairman for supervision.

“The largest firms should be prepared to see our expectations for them increase,” he said at a roundtable* yesterday. “The Federal Reserve’s supervisory teams have already included a number of detailed questions about plans for the transition away from Libor in their monitoring discussions with large firms".

The Fed also examines and monitors small and mid-size banks, and “will expect to see an appropriate level of preparedness at the banks we supervise, and that level must increase as the end of 2021 grows closer,” Quarles said.