U.S. regulators encourage banks to transition away from LIBOR "as soon as practicable"

WASHINGTON, Nov. 30 (Xinhua) -- U.S. regulatory agencies on Monday encouraged banks to transition away from the U.S. dollar London Interbank Offered Rate (USD LIBOR), a widely used benchmark rate, to alternative reference rates "as soon as practicable" and in any event by the end of 2021.

"Given consumer protection, litigation, and reputation risks, the agencies believe entering into new contracts that use USD LIBOR as a reference rate after December 31, 2021, would create safety and soundness risks and will examine bank practices accordingly," the Federal Reserve Board, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency said in a joint statement.