Pub 12 2022-2023 Issue 6

W IS YOUR BANK READY for LIBOR Fallback? By Selena Samale , Stinson, LLP With the remaining tenors of USD LIBOR going away on June 30, 2023, it is crucial for banks to ensure all outstanding action items for the transition have been addressed. The London Interbank Offered Rate (LIBOR) has been the dominant interest rate benchmark used in financial contracts in recent decades and is used as a reference rate in over $200 trillion worth of contracts worldwide. This guide provides an overview of the LIBOR Act and LIBOR regulations to transition what have been referred to in the market as “tough” legacy contracts without a clearly defined replacement benchmark. These new rules will automatically apply a board-selected benchmark replacement to LIBOR contracts subject to the Act after June 30, 2023. Colorado Banker 16