SBI demonstrates its progress towards LIBOR transition
SBI reaches an important milestone in LIBOR transition
Inter-Bank money market transaction executed by SBI through its Hong Kong branch
SBI was also one of the first major banks to sign the ISDA 2020 IBOR Fallbacks protocol on December 11, 2020
Chennai –21st January 2021: Country’s largest commercial bank, State Bank of India (SBI) has executed two inter-bank short term money market deal with pricing linked to SOFR (Secured Overnight Financing Rate). SOFR is an identified replacement for USD LIBOR which is expected to be phased out at the end of 2021. The sunset for the LIBOR has been triggered by the decision of Financial Conduct Authority (FCA) in UK not to compel contributing banks for LIBOR calculation after December 2021.
On this occasion, Deputy Managing Director (International Banking Group), Shri C Venkat Nageswar, said, “The transaction demonstrates SBI’s progress in aligning its systems and processes to embrace Alternate Reference Rates (ARRs). LIBOR Transition is a significant financial event for international financial markets, and these transactions by country’s largest bank, will set the pace for smooth transition of financial markets in ARR mechanism.”