LIBOR Update Center
Keeping you in the know
LIBOR, which stands for the London Interbank Offered Rate, is being phased out as the lending rate benchmark for banks worldwide. During this transition period, we want to keep you informed of the latest developments. On this page, you’ll find news, information and articles to help you stay up to date.
LIBOR is an interest rate benchmark calculated daily by ICE Benchmark Administration based upon the anticipated cost of borrowing for certain global banks on an unsecured basis. It’s established through a submission process by contributor banks, based upon actual inter-bank lending data, modified by the judgment of those banks when sufficient data is not available.
The final rate is used as a benchmark for pricing roughly $350 trillion of U.S. commercial loans, derivatives, student loans, mortgages and many other types of credit.
Why is LIBOR being phased out?
In the summer of 2017, the United Kingdom Financial Conduct Authority (FCA) announced it would no longer compel member banks to submit LIBOR rates after 2021. It would be determined by each member bank whether to continue submitting LIBOR rates thereafter. LIBOR may continue to exist past 2021, but could be discontinued as a benchmark rate.