Last week, the FFIEC issued a Joint Statement on Managing the LIBOR Transition, which highlighted risks associated with the discontinuation of LIBOR as well as supervisory expectations around this transition. Financial institutions face financial, legal, operational, and consumer protection risks, and regulatory agencies expect institutions to manage risks stemming from this significant event. To help banks assess their preparedness for LIBOR transition, the OCC has published a bulletin that includes a link to a LIBOR Self-Assessment Tool that encompasses exposure assessment and planning, replacement rates, fallback language, and progress and oversight.
For information about the checklist or questions about the risks associated with the discontinuation of LIBOR, contact us. We are here to help.