After almost 35 years, London Interbank Offered Rate (LIBOR), the most widely used benchmark interest rates for the pricing of loans, fixed deposits, debt securities and derivatives will no longer be published.
The phasing out of LIBOR marks one of the biggest changes to the structure of financial markets. Global initiatives have been launched to reform the LIBOR as well as other Interbank Offered Rates (IBOR) benchmarks and commence the transition to Risk Free Rates (RFRs)/Alternative Reference Rates (ARRs).
Contracts having LIBOR exposures (except those leveraging the extension to June 2023) and maturity date beyond 31st December 2021 will need to be transitioned to RFRs.
As from January 2022, no new contracts will be based on LIBOR.
MCB will engage with its clients impacted by the transition to determine the appropriate next steps.
To complete this journey, MCB has launched its LIBOR transition programme to ensure that the bank and its clients are well prepared for the end of LIBOR, as we know it. Alongside our dedicated LIBOR transition teams overseeing the adaptation of our products, systems, processes, and people towards the use of RFRs, we are keeping abreast of the latest evolutions of the global industry. We are also working closely with regulators and leveraging our large network of international partners in different markets, in order to provide our clients with the latest information and ensure an overall smooth transition.
Our team is actively reaching out to our impacted customers (i) to provide additional information about the LIBOR transition, (ii) for more details on the contracts and discuss any required alignment with the recommended international practices and requirements, (iii) to address any questions, (iv) and advise on the way forward and timeframes.
Download our Frequently Asked Questions (FAQ) here or contact your Relationship Manager or Private Banker should you need additional info.