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Libor for Non -Executives: 10 things you need to know
Top of board agendas right now is how to survive this ‘Covid Crisis’
Every sector is facing existential questions about its viability and its competitiveness under whatever the ‘new normal’ will look like. Added to the mix is the small matter of the forthcoming exit of the UK from the EU. The added red tape and need to fill in an export form will probably not speed up sales or increase their volume. These are significant challenges which businesses large and small will have to grapple with.
But another item which is important but will probably not be on most board agendas is the topic of Libor transition. Some may remember from the 2012 press coverage the mention of Libor and its manipulation by a number of banks. Well the Covid Crisis has reduced interbank lending even further so Libor, the London Inter-bank Offer Rate is even more vulnerable. Hence, the calls now to replace Libor with new replacement rates have only increased in volume since March 2020. The financial services regulators have said Libor will end from end-2021.