Daily News: August 19, 2019

LIBOR at 50: The End is Near


International Banker reported that August 15, 1969, the opening day of Woodstock, was also the date that LIBOR was created.

According to International Banker, in the 50-odd years since then, LIBOR has emerged as the global benchmark rate at which banks lend to each other in the interbank market for short-term loans.

However, in 2017, the UK’s Financial Conduct Authority (FCA) confirmed that submissions for LIBOR would cease at the end of 2021, primarily due to the concerns of authorities that such rates are being increasingly exposed to market manipulation. As the date approaches, International Banker points out, the question remains, what will replace LIBOR?