The Asian Development Bank (ADB) is preparing to depart from the London Interbank Offered Rate (LIBOR) interest rate for private sector borrowers. ADB is working closely with industry working groups and other multilateral development banks (MDBs) on a transition strategy from current benchmarks to alternative reference rates.

Transcript

Are you ready for life without LIBOR from end-2021?

This question, asked in early 2021 by the Director of Markets and Policy of the UK’s Financial Conduct Authority, is a very relevant question.

The UK’s Financial Conduct Authority regulates LIBOR and in July 2017, announced it will no longer compel banks to submit rates for LIBOR beyond 2021, signaling that the survival of LIBOR in its current form “could not and would not be guaranteed”.

The LIBOR transition is a major transformation in the global financial system. The transition is a G20 priority and according to the Financial Stability Board, it is an essential task and serves to promote stability in the global financial system.

Preparing to transition is critical and recommended by regulators. ADB has been preparing since 2018 to support clients towards an orderly LIBOR transition and to safeguard its financial soundness.

ADB is committed to work with clients through the transition to alternative reference rates.

On this webpage private sector clients can find information on the LIBOR transition and on how the Asian Development Bank is preparing for a successful transition. This webpage will be updated regularly to provide our clients with the latest information on this topic.

We are looking forward to working together with our clients towards a successful LIBOR transition.

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