Benchmark interest rates are a core component of global financial markets, influencing borrowing and lending for all types of market participants across a myriad of financial instruments. Regulatory and advisory bodies, working with market participants in various jurisdictions around the world, have begun releasing plans to retire existing benchmarks and begin the process of developing replacements. This culminated in the UK Financial Conduct Authority’s decision to no longer compel panel banks to participate in the LIBOR submission process after the end of 2021 and to cease oversight of the benchmark rates.
In this Financial Markets Insights, we highlight some of the numerous challenges that will need to be addressed as the future of LIBOR remains uncertain and the journey toward alternative benchmarks progresses.
PwC’s established global network of specialists deeply understands key LIBOR-impacted businesses such as:
We work with you to provide support across the entire lifecycle of the transition, beginning with mobilization and governance, impact assessment, definition of remediation work streams, contract management and remediation, client outreach, systems and process changes, risk and valuation model changes, and managing related tax and accounting implications.
Financial Markets Practice Leader, PwC US
Director, PwC US