What Term Lending Index Should Banks Adopt?
Banks have ceased using LIBOR to price assets and liabilities after 2021. However, some community banks are still deciding on the correct term lending index to adopt. Many banks are uncertain that they have chosen the best term index for their products and markets. We believe that having more options for community banks is beneficial….
Term SOFR and Our Last Update on Libor Cessation
US prudential regulators are clear that after 2021 banks may no longer use USD LIBOR as an index. The remaining USD LIBOR cash and derivative instruments will continue until June 30, 2023, at which point all USD LIBOR settings are expected to be discontinued, and most legacy LIBOR contracts will be converted to a Fallback…
WEBINAR: The Community Bank Planning Guide for the Cessation of LIBOR
The market is preparing for the end of USD LIBOR as a benchmark index after 2021. Most national and regional banks have created LIBOR working groups and have formulated a transition plan for LIBOR. At SouthState Bank, we have been busy over the last year working on our transition from LIBOR to alternative indexes for…
What Floating Rate Loan Index Should Community Banks Adopt?
Recent regulatory messages have reinforced the importance for commercial banks to prepare for the end of LIBOR after 2021. However, banks cannot wait until the end of 2021 to find replacement index(es) because the transition from LIBOR requires changes to systems, vendors, training, and marketing that can take several quarters to finalize and implement. To…