Announcement of LIBOR changes

In previous editions of the Finance Brief we have reported on the findings of the Wheatley Reivew.

Finance brief - 1 July 2013

• Announcement of LIBOR changes
• Farewell to the Mandatory Costs Schedule?
• BCOBS: Use of the right set-off
• Can a lender ever rely on a material adverse change event of default?
• A guide to lending against life assurance policies
• Trophy properties - some considerations for lenders

 

In previous editions of the Finance Brief we have reported on the findings of the Wheatley Reivew. The conclusions of this Review have begun to be implemented and on 11 June 2013 the British Banking Association ("BBA") announced that the following two recommendations would be enacted:

1. With effect from today (1 July 2013), the publication of individual bank's submissions to LIBOR (for USD, EUR, GBP, CHF and JPY) will be embargoed for 3 months. This means that such individual bank submissions will no longer be available on a daily basis: instead the rates will be released with a 3 month delay. The daily publication of the final LIBOR rates however will not be affected.
2. The publication of "same day" EUR LIBOR rates for 1 week and 1 month will cease from 31 July 2013. (These 2 rates were supplemental to the "spot" EUR LIBOR rates for all seven LIBOR tenors, which will continue as usual).