• Latest
  • Trending
The essence of banking through ages

Bank of England warns over easy alternatives to Libor

Investors caught off guard as Bank of Canada’s inflation indicator fails

BoC sets rates to two-decade peak with room for more

US markets’ slump deepens to a half-year peak; its consequences

US markets’ slump deepens to a half-year peak; its consequences

Dollar edges up as jolt from Fed minutes wanes

Dollar unflinchingly holds position amid uncharted numbers

Deutsche Bank snapped by Credit Suisse

Timeline until: Credit Suisse stumbled and UBS went to its aid

Relentless debt: US loans are dragging; root cause multiplies

Relentless debt: US loans are dragging; root cause multiplies

UK to slash bond issuance

Banks toss bets for high-jeopardy bonds

Support measures push Japanese corporate bankruptcies to 50 year low

Policymaker assembly ends with yen standing upright

Presently placid, the Fed is readying another shock

Presently placid, the Fed is readying another shock

Minor investors rejoice upon Chinese market rebound

Minor investors rejoice upon Chinese market rebound

China, US working hard on solution to audit dispute

US analysis of Chinese costs will not rely on the bloom time

Trend-setter Shein on Mexico expansion ideals

Trend-setter Shein on Mexico expansion ideals

Chip firm CXMT in dire straits with legislators chasing tails

Chip firm CXMT in dire straits with legislators chasing tails

Global Business Review Magazine
Sunday, June 11, 2023
Nominate Here
  • Home
  • Banking
  • Finance
  • Technology
  • FinTech
  • Business
  • Videos
  • Events
  • Awards
  • Magazine
No Result
View All Result
Global Business Review Magazine
No Result
View All Result

Bank of England warns over easy alternatives to Libor

The essence of banking through ages

Bank of England Governor Andrew Bailey said that markets must not replace the tarnished Libor interest rate with alternatives that could end up replicating the same flaws that made it easy for banks to manipulate.

The publication of some dollar denominations will continue until mid-2023 for outstanding contracts. But still the London Interbank Offered Rate is being scrapped. This is to be done at the end of December. In an online event Bailey told, that he is pleased that they have made a lot of progress and also, he is very optimistic that they will be there.

YOU MAY ALSO LIKE

BoC sets rates to two-decade peak with room for more

Timeline until: Credit Suisse stumbled and UBS went to its aid

Regulators want Libor replaced with overnight “risk-free” rates compiled by central banks, such as Sonia at the Bank of England and Sofr at the Federal Reserve. Some U.S. banks have called for an alternative rate added to Sofr. This is to reflect the credit risk of a counterparty to a loan. And then some are already being offered in the U.S. market.

Bailey said that while these rates may offer convenience as a short-term substitution, they present a range of complex longer-term risks. And also added that the ability of such rates to maintain representativeness through periods of stress remains a challenge to which they have not seen adequate answers. He even said that in the UK there is a clear consensus that credit sensitive rates are not required or wanted as part of sterling Libor transition and in his view this is sensible.

It was not clear to what extent alternative credit sensitive benchmarks have truly addressed the weaknesses of Libor. John Williams, president of the New York Federal Reserve Bank, said that the vast majority of transactions currently in Libor really are in the derivatives, in broader markets, where the overnight risk-free rate is the best and also most appropriate. But also, can build this really strong foundation due to the breadth and depth of those underlying markets. He also stated that credit-sensitive alternatives might only be appropriate for a limited set of loans.

Tags: Bank of EnglandBankingLIBOR
ShareTweetShare

Search

No Result
View All Result

Recent News

Investors caught off guard as Bank of Canada’s inflation indicator fails

BoC sets rates to two-decade peak with room for more

US markets’ slump deepens to a half-year peak; its consequences

US markets’ slump deepens to a half-year peak; its consequences

Dollar edges up as jolt from Fed minutes wanes

Dollar unflinchingly holds position amid uncharted numbers

Deutsche Bank snapped by Credit Suisse

Timeline until: Credit Suisse stumbled and UBS went to its aid

Relentless debt: US loans are dragging; root cause multiplies

Relentless debt: US loans are dragging; root cause multiplies

UK to slash bond issuance

Banks toss bets for high-jeopardy bonds

Global Business Review Magazine

Global Business Review is a online print magazine focusing on the updates and information about on emerging markets, Finance, Banking, Technology. Global Business Review provides news, features, analysis, commentary, and interviews from industry across the globe.

Recent News

  • BoC sets rates to two-decade peak with room for more
  • US markets’ slump deepens to a half-year peak; its consequences
  • Dollar unflinchingly holds position amid uncharted numbers
  • Timeline until: Credit Suisse stumbled and UBS went to its aid
  • Relentless debt: US loans are dragging; root cause multiplies

Categories

  • Banking
  • Business
  • Events
  • Finance
  • FinTech
  • Tech
  • Uncategorized
  • Videos
  • About
  • Nominate
  • Privacy & Policy

© 2023 Global Business Review Magazine - All Rights Reserved.

No Result
View All Result
  • Home
  • Banking
  • Finance
  • Technology
  • FinTech
  • Business
  • Videos
  • Events
  • Awards
  • Magazine

© 2023 Global Business Review Magazine - All Rights Reserved.

Go to mobile version