LIBOR and reference rate reform
The clock is ticking toward 2021 and the end of LIBOR – will you be ready?
A tremendous shift across financial markets is taking place. The London Interbank Offered Rate (LIBOR) is being replaced. Currently the benchmark for over US$350 trillion in financial contracts worldwide, the impact of the transition from LIBOR will be far-reaching for financial services firms, businesses and customers alike. Given the scope of the impact, planning for this transition must start now and begin with a comprehensive strategy.
Key impacted businesses and functions include capital markets, commercial lending, retail banking and wealth management, investment management, insurance, market infrastructure and corporate treasury.
Opportunities emerge
As firms start to address the impact of LIBOR transition across their organization, opportunities become apparent:
- To create new and differentiated products
- To improve customer experiences and increase customer loyalty
- To standardize and improve processes
- To make internal improvements in agility, collaboration and decision making
- To tackle “while you’re at it” projects
How PwC can help
The transition from LIBOR is market, not regulator driven and institutions and territories are preparing at different rates. PwC’s LIBOR and reference rate reform specialists in territories throughout the globe can help you assess, prepare for, and execute on the transition. We work with you across the entire lifecycle of the transition, including:
- Program mobilization and governance
- Impact assessment and transition planning
- Contract management and remediation
- Client & customer outreach and communications
- Systems & process changes
- Risk and valuation model changes
- Managing related tax & accounting implications
