LIBOR – the new y2k/euro event?
LIBOR – the new y2k/euro event?
Insight

LIBOR – the new y2k/euro event?

Managing the transition risks – planning for complexity and uncertainty

January 1, 2022 could be the first day the London Interbank Offered Rate (LIBOR) is no longer used as a reference rate for numerous financial instruments. The impact of this change is so far reaching across financial institutions and their industry that few will be fully prepared for the complexity and uncertainty that is expected to result.

This paper explains why reliance on LIBOR is unsustainable, why collective and purposeful action is needed across the industry, and why understanding the variety and interconnectivity of risks is essential for every financial institution.  It also lays out the steps a successful transition strategy will encompass — a strategy that includes operations, systems, models, processes, contracts, tax, and finance as well as the customer experience.