The London Interbank Offered Rate (LIBOR), which is the globally recognised base rate for pricing financial instruments in USD, GBP, EUR, JPY and CHF currencies, may cease to be quoted after December 2021.
It's important for users to understand and quantify their exposures to LIBOR and start considering transition to alternatives, which may involve a substantial amount of work and a careful examination of the risks involved.
Westpac has a number of resources that can help. We have an IBOR Transition Team that is managing how Westpac responds to the changes. Questions can be emailed to the IBOR transition team at Iborupdates@westpac.com.au.
Customers should also seek their own legal, accounting, tax and other commercial advice in relation to the impending changes.
A key focus in 2020 for many Westpac customers is preparation and planning for LIBOR transition. While there is a level of uncertainty in the market around the timing of LIBOR cessation, several regulators globally encourage all customers to prepare for LIBOR ceasing after the end of 2021.