Banks should adopt alternative reference interest rates swiftly ahead of the expected end of Libor in 2021, said a Swiss expert and member of a panel developing the country’s alternative rate for new corporate and private loans.
Switzerland, the United States, the euro zone, Britain and Japan need to replace the dominant Libor money market rate, which is being phased out after a series of scandals that led to banks being fined billions of dollars.
Switzerland is now putting the finishing touches on its transition to the Swiss Average Rate Overnight (SARON).
At a meeting in Zurich on Friday, SARON task force co-chair Martin Bardenhewer said banks should not delay in making the switch from Libor.
The full article is available at https://www.reuters.com/article/us-swiss-rates/banks-should-quickly-adopt-libor-alternatives-swiss-expert-idUSKCN1RA1N4