FSB Report Looks At Remaining LIBOR Transition Challenges

In a new report, the Financial Stability Board ("FSB") identified the remaining challenges concerning the transition away from LIBOR. The report is based on a survey on supervisory issues related to LIBOR transition that was sent to regulators across the globe.

The FSB found, among other things, that:

• continued LIBOR reliance "poses clear risks to global financial stability" and requires "significant commitment and sustained effort" from market participants across many jurisdictions;
• a number of "non-LIBOR" jurisdictions are not expected to see a significant impact from LIBOR cessation, but that there are many instances of a lack information or adequate assessment;
• financial institutions in LIBOR jurisdictions have shown to be "more advanced" to facilitate and monitor benchmark transition, with a wider range in preparedness among firms in "non-LIBOR" jurisdictions;