Banks reject SOFR in Fed’s Covid lending schemes

Emergency loans to businesses get caught up in Libor transition

US-Federal-Reserve

Banking groups have criticised US plans to benchmark emergency loans made to businesses during the Covid-19 pandemic to the secured overnight financing rate, or SOFR, instead of the more commonly used Libor.

Both the American Bankers Association (ABA) and the Bank Policy Institute (BPI) said in separate comment letters last week that the Federal Reserve should allow lenders to use Libor as the reference rate for these loans – with fallback language to SOFR inserted in the event Libor ends

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here