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FAQs Detail Implementation of LIBOR Alternative

 

Sept. 21, 2018 — The Federal Reserve Bank of New York released frequently asked questions on the Alternative Reference Rates Committee’s efforts to replace the London Interbank Offered Rate, or LIBOR. ICBA represents community banks on the Federal Reserve Board panel, which was reconstituted earlier this year to implement the transition from U.S. dollar LIBOR to an alternative reference rate.

The Fed is replacing LIBOR with the Secured Overnight Financing Rate, a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities. Federal Reserve Vice Chairman for Supervision Randal Quarles in July expressed support for the SOFR, noting its usage is already outpacing LIBOR.

Read the FAQs

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