The phase-out of LIBOR
The phase-out of LIBOR
Insight

The phase-out of LIBOR

Browse our latest thinking to learn about preparing for a post-LIBOR marketplace

The future of the London Interbank Offer Rate (LIBOR) has become highly uncertain since the Financial Conduct Authority announced in 2017 it would not compel or persuade panel banks to make LIBOR submissions after 2021.

Across global jurisdictions, the financial services industry, working groups, and regulators are focused on efforts to choose and transition to alternative risk-free rates (RFR). In a highly uncertain environment, individual financial institutions must assess and plan for the potential impact of a transition away from LIBOR on their products, infrastructures, and customers. LIBOR is used within a broad range of financial instruments involving trillions in USD worldwide. Financial institutions can expect its decommission to significantly impact most of their functions and businesses.

KPMG professionals are currently guiding numerous firms in structuring initial 90-day LIBOR transition plans that encompass enterprise-wide governance, contract identification, strategic planning, and the inventory of systems, infrastructure, and functions that require change. We understand the critical need for the use of cognitive technologies (including natural language processing, machine learning, and other capabilities enabled by artificial intelligence) in parallel with a flexible approach that keeps end-users and customers at the forefront of transition planning.

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