The Wheatley Review of LIBOR and LIBOR reform [Archived]

The following Banking & Finance practice note provides comprehensive and up to date legal information covering:

  • The Wheatley Review of LIBOR and LIBOR reform [Archived]
  • What is LIBOR?
  • Proposals to replace LIBOR and summary of developments
  • The Wheatley Review
  • Implementation of recommendations
  • Andrew Bailey’s speech on discontinuation of LIBOR
  • RFRs as possible alternatives to LIBOR
  • Next steps—working groups
  • RFRs and the loan market
  • Background to the Wheatley Review
  • More...

The Wheatley Review of LIBOR and LIBOR reform [Archived]

This Practice Note:

  1. explains what LIBOR is

  2. provides a brief summary of the developments affecting LIBOR over the last few years and the proposed upcoming changes, and

  3. discusses in detail the Wheatley review and action taken to implement the proposals—please note that these sections deal with historic developments and are not maintained

For up to date developments concerning LIBOR, see LIBOR developments tracker.

What is LIBOR?

LIBOR (the London Inter-Bank Offered Rate) is the rate of interest offered by one (lending) bank to another (borrowing) bank in the London inter-bank market.

LIBOR is often used as a benchmark in many different types of finance transactions. From 1986 to 1 February 2014, the administrator of LIBOR was the British Bankers' Association (BBA) (since 1 July 2017, the BBA has been a part of UK Finance). Rates administered by the BBA were typically referred to as 'BBA LIBOR' to distinguish them from an individual bank's own LIBOR. On 1 February 2014, the administrator of LIBOR became ICE Benchmark Administration (IBA), part of the Intercontinental Exchange Group (ICE). The rates calculated by IBA are known as 'ICE LIBOR'.

ICE LIBOR is calculated every business day. There are rates for:

  1. seven borrowing periods, ranging from overnight loans to 12-month loans, and

  2. five major currencies (Euro, Sterling, Swiss Franc, US Dollar and Japanese Yen)

IBA has a

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