LIBOR

The financial industry has been preparing to transition from LIBOR rates to SOFR rates for over two years. Now that the LIBOR cessation date is here, CFIs may still have questions. We discuss what the SOFR rate options are, how the LIBOR Act could impact your remaining LIBOR-based loans, and where to find helpful resources.

LIBOR was retired for new contracts at the end of last year. But, many community financial institutions have not started using SOFR, the recommended guidance of the Alternative Reference Rates Committee. Are you one of those institutions? Let’s explore why some institutions are hesitant to transition to SOFR and examine another replacement index option.

Though the clock is ticking down to the ultimate cessation of LIBOR, the banking industry’s adoption of SOFR has been slower than regulators might have expected. We discuss reasons for the delay and legislation that can ease the process.