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Quarles: Fed Expects Prep for LIBOR Transition

The Federal Reserve will expect to see an appropriate level of preparedness for the transition away from the London Interbank Offered Rate, or LIBOR, Fed Vice Chairman for Supervision Randal Quarles said. Quarles said the Fed’s supervisory approach will be tailored to the size of institution and the complexity of LIBOR exposure.

U.K. authorities have said they can only commit to publishing Libor—upon which some $200 trillion in U.S. dollar-based derivatives and loans are based—through the end of 2021. The Fed’s Alternative Reference Rates Committee recently issued a user guide to the Secured Overnight Financing Rate, the instrument recommended by the committee as a LIBOR alternative.

ICBA serves on the ARRC, which is implementing the transition from LIBOR, and has expressed concern with community bank awareness of the transition.

Read Remarks from Quarles
Access User Guide
Learn More About ARRC
View FAQs on LIBOR Transition

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