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FCA Publishes Statement on LIBOR Panels

The FCA has published a statement relating to the panels of banks supporting the London interbank offered rate (LIBOR). In the statement the FCA confirms that all 20 of the panel banks have agreed to support the LIBOR benchmark, which ensures that the benchmark will be sustainable until 2021.

Andrew Bailey, Chief Executive of FCA  said in a speech earlier this year that, whilst significant improvements have been made to LIBOR since April 2013, the absence of active underlying markets means that the future sustainability of LIBOR cannot be guaranteed. The support of the panels for LIBOR is required until the end of 2021, by when a transition can be made to alternative rates.

The FCA has been working with the panel banks to finalise an agreement for the banks to remain on the panels they currently submit to until the end of 2021.

The statement confirms that there will be two amendments to individual panel compositions:

  • Société Générale will cease submissions to the US dollar panel; and
  • Crédit Agricole Corporate and Investment Bank will cease submissions to the Japanese yen panel.

The FCA stated that it does not expect to see any further changes to the LIBOR panels.

A copy of the FCA statement is available.

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