EBA highlights elevated benchmark rate transition risks

Article summary

The European Banking Authority (EBA) has published a thematic note on the transition risks of benchmark rates as the major benchmark interest rates: the London Interbank Offered Rate (LIBOR) and the Euro Overnight Index Average (EONIA) are being phased out at the end of the year. EBA stresses the need for benchmark rates transitions to be managed diligently and timely within the remaining months and all parties involved in the transition process need to cooperate (including banks, their clients, and other counterparties as well as regulators and supervisors).