InterBank Offered Rates (IBORs) are used to determine the unsecured short-term funding cost in the interbank market for a combination of currencies, tenors and maturities.
Behind the scenes they are used as an index for almost all financial instruments. However, mounting regulatory pressure in the wake of the 2008 financial crisis, the LIBOR scandal, UK Government and Financial Stability Board reviews means we are now on a path towards a reform of the basis of interest rate benchmarks and, ultimately, the loss of IBOR.
So what are the potential implications for the financial services industry and how can firms plan for this transition? Our latest briefing outlines the path towards IBOR transition, with commentary from our experts.