Big financial firms ready to scrap Libor, Moody's says
Reuters
Published Sep 22, 2020 06:11AM ET
LONDON (Reuters) - Moody's (NYSE:MCO) said on Tuesday that a survey of 85 large banks and insurers showed they have plans in place to end using the tarnished Libor interest rate benchmark by the end of 2021.
Regulators want Libor scrapped after banks were fined for trying to rig the benchmark, which is used in financial contracts worth trillions of dollars globally.
"All of the financial institutions Moody’s surveyed this year said they now have transition plans in place, compared with a year ago when only around two-thirds of banks, and one-third of non-bank financial institutions had plans," the ratings agency said in a statement.
Most of those surveyed said that COVID-19 disruption would not delay the phase-out and only affect interim milestones, Moody's said.
"Most institutions we surveyed still expect transition costs to be split between lenders and borrowers," said Olivier Panis, vice president, senior credit officer at Moody's Investor Service.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.