Regulatory AlertsSR 21-12: Answers to Frequently Asked Questions on the Transition Away from London Interbank Offered Rate (LIBOR)
The Board of Governors of the Federal Reserve System issued this guidance to assist financial institutions supervised by the Federal Reserve in transitioning away from the London Interbank Offered Rate (LIBOR). The document provides a comprehensive set of frequently asked questions that were initially released in July 2021 and subsequently updated in November 2021 to address ongoing industry inquiries. Institutions are encouraged to regularly monitor the Board’s public website for periodic updates and revisions to these FAQs as the transition progresses.
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SR 21-12: Answers to Frequently Asked Questions on the Transition Away from London Interbank Offered Rate (LIBOR)
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D.C. 20551
DIVISION OF SUPERVISION AND REGULATION
SR 21-12
July 29, 2021
Revised November 19, 2021
Attachment Reposted November 19, 2021
In November 2021, this letter was revised to provide additional frequently asked questions in response to questions from institutions regarding the transition away from using LIBOR as a reference rate. The updated FAQs, together with the FAQs issued in July 2021, are attached to this letter.
TO THE OFFICER IN CHARGE OF SUPERVISION AND APPROPRIATE SUPERVISORY AND EXAMINATION STAFF AT EACH FEDERAL RESERVE BANK AND INSTITUTIONS SUPERVISED BY THE FEDERAL RESERVE
SUBJECT:
Answers to Frequently Asked Questions on the Transition Away from London Interbank Offered Rate (LIBOR)
Applicability: This guidance applies to all financial institutions supervised by the Federal Reserve, including those with $10 billion or less in consolidated assets
The Federal Reserve is issuing frequently asked questions (FAQs) to assist its supervised firms in the transition away from using the LIBOR as a reference rate.
This letter announces the initial set of FAQs on this topic, which are included in the attachment to this letter. The Federal Reserve may periodically update the FAQ document; therefore, institutions are encouraged to check the Board’s public website for new FAQs or revisions to a previously issued FAQs.
Reserve Banks are asked to distribute this letter to the supervised firms in their districts and to appropriate supervisory staff. In addition, supervised firms may send questions regarding this topic via the Board’s public website. 1
signed by Michael S. Gibson Director Division of Supervision and Regulation
Attachments:
Attachment A: Answers to Frequently Asked Questions on the Transition Away from LIBOR
(Effective July 29, 2021)
Attachment B: Answers to Frequently Asked Questions on the Transition Away from LIBOR
(Effective November 19, 2021)
Notes:
See http://www.federalreserve.gov/apps/contactus/feedback.aspx . Return to text.
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Last Update: November 19, 2021