BNP Paribas Case Study | Transitioning From Libor | Australia’s Lending Boom

Dear {{lead.First Name:default=Subscriber}},

Transitioning from Libor to a new benchmark rate will be extremely painful but ultimately beneficial for treasurers, argued panellists at the UK’s annual Association of Corporate Treasurers (ACT) conference.

Tom Gilliam, corporate finance director, GlaxoSmithKline (GSK), said: “We have to assume [Libor] will cease at the end of 2021. There might be some sort of alternative rate published, which at best will be a non-robust benchmark, but that is not something that I would want to rely on.”

The London Interbank Offered Rate (Libor) is an important benchmark rate that underpins an estimated $370tn of financial products around the world, including some mortgages, pensions, consumer loans and bonds.

However, British banks will not be required to sustain the London Interbank Offered Rate after 2021.

Read more on transitioning from Libor here.

Vicky Beckett

Editor, The Global Treasurer

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