LIBOR Contracts Cessation

LIBOR, an interest rate benchmark used in financial markets, will be discontinued by 31 December 2021 and be replaced with alternative rates.

 

In line with global financial benchmark reforms, Bank Negara Malaysia requires banks to cease new issuance of LIBOR-referencing contracts by 31 December 2021.

 

As a bank customer, you are advised to:

  • Ensure capacity and system readiness to transact new products in the alternative rates before 31 December 2021;
  • Incorporate fallback provisions for affected LIBOR contracts to avoid any potential legal implications; and
  • Contact bank as soon as possible to avoid delay in transitioning to alternative rates.

The e-brochure emphasises the urgency for bank customers to be prepared for the transition from LIBOR to alternative rates.

 

<Click on the button above to view the e-brochure in PDF>