First announced in 2017, the phaseout of LIBOR (London Interbank Offered Rate) as a global interest rate benchmark for interbank lending will be completed by the end of 2021. In addition, many banks also use LIBOR as a reference rate for adjustable rate commercial and consumer loans. The United States Federal Reserve has recommended SOFR (Secured Overnight Financing Rate) as a replacement.

As you may know, LIBOR (London Interbank Offered Rate) is a global interest rate benchmark that banks use to lend to each other. Many banks also use LIBOR as a reference rate for commercial and consumer loans that carry an adjustable rate. As a result of some global scandals related to LIBOR rate manipulation, it will be phased out by the end of 2021.