LIBOR Transition: US regulator publishes a self-assessment tool for banks
The Office of the Comptroller of the Currency (OCC) has issued a bulletin that provides a self-assessment tool for banks to evaluate their preparedness for the expected cessation of the London InterBank Offered Rate (LIBOR).
The OCC indicates the tool can be used to assess the appropriateness of a bank’s LIBOR transition plan, management’s execution of the bank’s transition plan, and related oversight and reporting.
The regulator expects that banks’ LIBOR exposure and risk assessments and cessation preparedness plans should be at least near completion with appropriate management oversight and reporting in place by end of 2021.
Also, by this date, most banks are expected to be working toward resolving replacement rate issues while communicating with affected customers and third parties.
Further details are available here.
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