Important information from NORD/LB regarding the reform of the current reference interest rates
With the support of supervisory authorities and central banks, initiatives have been working for several years to reform the current reference for floating rates. The corresponding reform projects are taking place in a large number of different jurisdictions involving multiple currencies, including the euro area, the USA, the United Kingdom (UK), Switzerland, Canada, Japan, Hong Kong, Singapore and Australia.
The aim here is to increase the reliability and robustness of the variable interest reference rates. According to the definition of the supervisory bodies, this can be achieved by transaction-based reference interest rates.
There are local variable interest reference rates in the individual currency areas. In addition to EURIBOR (Euro Interbank Offered Rate), USD LIBOR (London Interbank Offered Rate) or GBP LIBOR are the most commonly known variable interest reference rates. Each of these reference rates is the basis for a variety of transactions, including interest payments on derivatives, loans and bonds.
The attached document serves as initial information and therefore does not provide a complete overview of market developments. We recommend that all our customers and other market participants take an intensive and individual approach to the topic and monitor current developments actively.
The corresponding information can be found in the attached document.