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OCC Bulletin 2023-13 | April 26, 2023

LIBOR Transition: Joint Statement on Completing the LIBOR Transition

To

Chief Executive Officers of All National Banks, Federal Savings Associations, and Federal Branches and Agencies; Department and Division Heads; All Examining Personnel; and Other Interested Parties

Summary

The Office of the Comptroller of the Currency (OCC) and other federal financial institution regulatory agencies (collectively, the agencies),1 in conjunction with the state bank and state credit union regulators, today issued a joint statement to remind banks2 that U.S. dollar (USD) LIBOR panels will end on June 30, 2023, and to emphasize that it is important that banks with USD LIBOR exposure complete their transition of remaining LIBOR contracts as soon as practicable. Failure to adequately prepare for LIBOR’s discontinuance could undermine financial stability and banks’ safety and soundness and create litigation, operational, and consumer protection risks.

Note for Community Banks

This OCC bulletin applies to community banks.

Highlights

The agencies are advising banks to have taken all necessary steps to prepare for an orderly transition away from LIBOR by June 30, 2023.

  • Banks are encouraged to ensure that replacement alternative rates are negotiated when needed for all LIBOR-referencing financial contracts. Banks are also encouraged to work expeditiously with their customers and coordinate with other banks as needed in these efforts.
  • Banks are reminded that safe and sound practices include conducting the due diligence necessary to ensure that alternative rate selections are appropriate for the banks’ products, risk profiles, risk management capabilities, customer and funding needs, and operational capabilities.

Further Information

Please contact Ang Middleton, Risk Specialist, Treasury and Market Risk, Bank Supervision Policy, or Chris McBride, Director of Treasury and Market Risk, Bank Supervision Policy, at (202) 649-6360.

 

Grovetta N. Gardineer
Senior Deputy Comptroller for Bank Supervision Policy

Related Link

1 The federal financial institution regulatory agencies are the Board of Governors of the Federal Reserve System (Board), the Consumer Financial Protection Bureau (CFPB), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), and the Office of the Comptroller of the Currency (OCC).

2 "Banks" refers collectively to national banks, federal savings associations, and federal branches and agencies of foreign banking organizations.

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