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Planning for LIBOR Transition

The LIBOR interest benchmark is changing

Interbank Offered Rates (IBORs) are expected to be replaced by new Risk-Free Rates (RFRs) across the global financial markets. Based on statements by the FCA, the expectation is that the London Interbank Offered Rate (LIBOR) will no longer be a credible lending rate after the end of 2021. Work is also underway for the replacement of other global IBORs.

There is considerable work being done across the industry to develop new Risk-Free Rates. Given the complexity of changes to these critical benchmarks of the global financial system we want to share some information with you now about the anticipated transition.

Five steps you can take to start preparing

Download our overview.

What's changing and why

SONIA - An overview

LIBOR is a forward-looking term rate. However SONIA is a backward-looking, overnight rate based on actual transactions that have taken place the day before. Recognising that certain markets, for example cash and lending, may prefer forward-looking term characteristics, the Bank of England has gathered market views on a forward-looking Term SONIA Reference Rate (TSRR). A decision should be made later this year.

About SONIA

Key dates

Ulster Bank Ireland DAC supports the market transition from LIBOR. We’re working closely with market participants, industry bodies and trade associations, to make sure the transition is as smooth as possible.

Supporting the LIBOR transition

Supporting the market

By the end of 2021 GBP LIBOR will most likely be replaced by SONIA

Supporting clients

Client education is a vital part of the transition from IBORs to RFRs.

Frequently asked questions

More information on the alternative Risk-Free Rates. 

Summary of IBOR replacement rates

* Secured Overnight Financing rate;** Swiss Average Rate Overnight;*** Tokyo Overnight Average Rate.

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