FDIC Provides Information on Potential Transition from LIBOR

In the Winter 2018 issue of Supervisory Insights, the FDIC provided information to help financial institution management navigate a potential transition away from LIBOR.

In an article titled "Transitions in Financial Instrument Reference Rates," the FDIC advised institutions to go beyond simply selecting interest rates and instead to focus on evaluating the impact of the risks associated with a potential transition in reference rates with regard to areas such as information technology, management information systems and accounting, among others.

In addition, the FDIC noted, there are "no plans to examine financial institutions for the status of LIBOR planning or criticize loans merely because they use LIBOR as a reference rate."