SR 23-2 / CA 23-3

In view of the upcoming termination of the remaining U.S. Dollar (USD) LIBOR tenors, various U.S. banking regulators or supervisory agencies, including the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Company (FDIC), the Board of Governors of the Federal Reserve System (FED), the National Credit Union Administration (NCUA), and the Consumer Financial Protection Bureau (CFPB), have issued a Joint Statement on Completing the LIBOR Transition. Therein, the agencies remind financial institutions of the wind-down of the remaining USD LIBOR tenors on June 30, 2023 and urge them to take adequate steps to prepare for this termination.
Specifically, financial institutions need to ensure that
– they transition remaining USD LIBOR referencing financial contracts to contracts with alternative reference rates;
– negotiate appropriate terms with their clients and – if needed – collaborate with other financial institutions in their transition efforts; and
– the alternative reference rates chosen are in line with a bank’s risk appetite, its risk profile and management capabilities, customers‘ funding needs, and the bank’s overall business operations and product offering.