LIBOR Transition LIBOR Transition: SBI ready to switch to new interest benchmark
Mumbai/IBNS: The country's largest public-sector lender State Bank of India Thursday said it is all set to implement the new interest benchmark with the cessation of the traditional London Interbank Offered Rate (LIBOR) for its daily business and product pricing.
All the systems and processes in SBI are aligned to support transactions linked to the alternate reference rates ARR, the bank said in a release.
“LIBOR Transition is a significant financial event for international financial markets,” said Ashwini Kumar Tewari, Managing Director (International Banking, Technology & Subsidiaries), SBI.
“As the country’s largest bank, SBI has been assiduously tracking the global developments in the LIBOR space to align with the best practices and has proactively modified its systems and processes to embrace the change from LIBOR to ARR.”
The bank has already introduced ARR-based products to its domestic and foreign customers.
Additionally, the bank is at the forefront in spreading awareness about this transition among its customers and extensive client groups through curated Knowledge Sharing Sessions.
January 1, 2022 is crucial for the LIBOR transition process since all the new transactions will be referenced to the new benchmark rates from this date as per the recommendations of RBI and other banking regulators across the world.
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