LIBOR and Reference Rate Reforms

London Interbank Offered Rate (LIBOR) is the world’s most widely used benchmark and is pervasive throughout the global financial system. It is the benchmark for over US$350 trillion in financial contracts worldwide. The London Interbank Offered Rate (LIBOR) may cease to exist after December 2021 and hence is being replaced. The impact of the transition from LIBOR will be far-reaching and spread across industries globally as well as in India. In the Indian context, the key businesses impacted by LIBOR would include:

  • Capital Markets
  • Commercial Lending
  • Retail Banking and Wealth Management
  • Investment Management
  • Corporate Treasury
libor

The following areas that will be impacted in most organizations across industries:

  • Derivatives and Hedge Accounting
  • Process and Controls

  • Transfer Pricing
  • Risk Management

  • Product Characteristics

  • System Infrastructure

  • Tax implications and

Opportunities emerge

Firms across the globe are gaining expertise in the new benchmark and have started to address the impact of LIBOR transition across their organisation by: 

  • Creating new and differentiated products

  • Improving customer experiences and increasing customer loyalty

  • Standardising and improving processes

  • Making internal improvements in agility, collaboration and decision making

How PwC can help

PwC LIBOR and reference rate reform specialists in territories throughout the globe can help you assess, prepare for, and execute on the transition. We work with you across the entire lifecycle of the LIBOR transition, including:

Program mobilization and governance
Programme mobilisation and governance
Impact assessment and transition planning
Impact assessment and transition planning
Contract management and remediation
Contract management and remediation
Client & customer outreach and communications
Client and customer outreach and communications
Systems & process changes
Systems and process changes
Risk and valuation model changes
Risk and valuation model changes
Managing related tax & accounting implications
Managing related tax and accounting implications

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Contact us

Sreedhar Vegesna

Partner, Financial Services, Transformation, PwC India

Tel: +91 40 4424 6435

Kuntal Sur

Partner and Leader, Financial Risk and Regulations, PwC India

Tel: +91 22 6669 1335

Ruchi Sharma

Executive Director, Advisory, PwC India

Kapil H Todi

Associate Director, Financial Risk and Regulations, PwC India

Tel: +91 98 2060 0369

Contact us

Sreedhar Vegesna

Partner and FS Advisory Leader, PwC India

Tel: +91 40 4424 6435

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