Regulatory AlertsSR 20-25: Interagency Statement – Reference Rates for Loans
The Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation issued a statement clarifying that they do not endorse a specific replacement rate for LIBOR for loans. Banks are encouraged to determine appropriate reference rates based on their funding models and customer needs while accelerating outreach to prepare customers for the transition. Institutions must include robust fallback language in lending contracts and consider technical changes to internal systems to accommodate new or fallback reference rates.
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