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9/22/2020, 12:47 PM (Source: TeleTrader)
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Moody's: Financial giants ready to get rid of LIBOR

The world's largest financial institutions are prepared to work after the London Interbank Offered Rate (LIBOR) interest rate benchmark is scrapped, Moody's revealed in a report published on Tuesday. The costs of the transition will most likely be divided between lenders and borrowers, the rating agency added.

"All of the financial institutions Moody’s surveyed this year said they now have transition plans in place, compared with a year ago when only around two-thirds of banks, and one-third of non-bank financial institutions had plans," Moody's said, adding that it had surveyed 85 insurance companies and banks.

LIBOR is used to determine borrowing costs between banks and is administered by the Intercontinental Exchange. Earlier, regulators in the United Kingdom said Libor would remain in place until 2021, but they want it scrapped then after financial institutions were accused of attempting to rig it.

Baha Breaking News (BBN) / VP