IBOR transition


A message from the Group Treasurer

Dixit Joshi, Deutsche Bank Group Treasurer, Member of the ISDA Board, Member of the Bank of England / Financial Conduct Authority, Senior Advisory Group for Sterling Risk Free Rate Transition

Dixit Joshi, Deutsche Bank Group Treasurer, Member of the ISDA Board, Member of the Bank of England / Financial Conduct Authority, Senior Advisory Group for Sterling Risk Free Rate Transition

We are approaching a watershed moment in the way financial markets work around the world. The way we calculate a wide range of financial transactions is changing. This will affect all participants in financial markets. Deutsche Bank is committed to playing its part in a smooth transition.

For decades, financial markets worldwide have relied on Interbank Offered Rates, or IBORs, as a reference rate for a wide variety of transactions worth trillions of euros. This is now changing as a result of reform. Across the world, regulators are guiding financial markets away from reliance on IBORs and towards the use of alternative ‘Risk Free Rates’ to underpin a wide variety of financial transactions and products.

The transition to Alternative Risk Free Rates has a number of benefits. Risk Free Rates are transparent; they are based on real transactions; they are difficult to manipulate and form a reliable basis for all types of financial contracts which rely on a reference rate. Regulatory authorities in major markets have signalled their intent to complete the transition to Risk Free Rates by the end of 2021.

This transition will affect individuals, companies and institutions who use a wide variety of financial instruments which rely on IBORs as a reference rate. For example: family businesses funding their expansion; students coming out of university with long-term loans, or international companies seeking to protect themselves against fluctuations in interest rates or currency rates. Transition will also affect pension funds, and the pensioners they serve, who rely on income which, today, is calculated using an IBOR.

Deutsche Bank is committed to supporting our clients, counterparties and other stakeholders as we transition from IBORs to alternative Risk Free Rates. To discuss how this transition may affect you or your business, please do not hesitate to contact us.

Contact

You have questions related to IBOR? Contact us at IBORtransition@db.com.

Awards

Awards for Deutsche Bank
Deutsche Bank has been rewarded internationally with numerous outstanding awards.
more

Social Media

Social Media

We keep you in the loop with Twitter, YouTube, InstagramFacebook, or our RSS news feeds and podcasts.
more

This website uses cookies in order to improve user experience. If you close this box or continue browsing, we will assume you agree with this. For more information about the cookies we use or to find out how you can disable cookies, click here.