How regional banks could shape US Libor replacement

Regulators convene working group to address credit sensitivity concerns

A group of regional banks could have a big influence on benchmark rate reform in the US. In a letter to US regulators, the banks expressed concerns about the lack of credit sensitivity in the replacement benchmark of choice, the US secured overnight financing rate (SOFR). In response, regulators launched the Credit Sensitivity Group – to little fanfare – in February this year.

Leading representatives from the US Federal Reserve Board, the Office of the Comptroller of the Currency and the