SR 21-17: Interagency Statement on Managing the LIBOR Transition

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SR 21-17 / CA 21-15: Interagency Statement on Managing the LIBOR Transition

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D.C. 20551

DIVISION OF SUPERVISION AND REGULATION

DIVISION OF CONSUMER AND COMMUNITY AFFAIRS

SR 21-17 / CA 21-15

October 20, 2021

Revised October 22, 2021

On October 22, 2021, this letter was re-issued as a joint letter with the Division of Consumer and Community Affairs. The attachment, Joint Statement on Managing the LIBOR Transition, was not revised.

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:

Interagency Statement on Managing the LIBOR Transition

Applicability: This letter applies to all institutions supervised by the Federal Reserve, including those with $10 billion or less in consolidated assets.

On October 20, 2021, the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, the National Credit Union Administration, and the Consumer Financial Protection Bureau (collectively, the agencies) issued a statement (statement) to emphasize the expectation that supervised institutions with LIBOR exposure continue to progress toward an orderly transition away from LIBOR. Additionally, this statement includes clarification on the meaning of new LIBOR contracts, considerations when assessing appropriateness of alternative reference rates, and expectations for fallback language. Failure to adequately prepare for LIBOR's discontinuance could undermine financial stability and institutions' safety and soundness and create litigation, operational, and consumer protection risks.

Reserve Banks are asked to distribute this letter to the supervised organizations in their districts and to appropriate supervisory staff. Questions may be sent via the Board's public website. 1

signed by Michael S. Gibson Director Division of Supervision and Regulation

signed by Eric S. Belsky Director Division of Consumer and Community Affairs

Attachments:

Joint Statement on Managing the LIBOR Transition

Notes:

See http://www.federalreserve.gov/apps/contactus/feedback.aspx

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Last Update: October 22, 2021