IBOR transition: Private Clients
Deutsche Bank’s priorities throughout IBOR transition are to continue to provide products and services to clients, to facilitate the transition of existing transactions to new Risk Free Rates (RFRs) and to support the required changes to legal documentation to ensure an orderly transition to RFRs.
The bank established its Benchmark Transition Programme in 2017, along with robust governance to coordinate efforts on impact assessments, risk mitigation and a smooth transition for new and existing contracts. The programme includes subject matter experts from all areas of the bank and across all products and markets.
Deutsche Bank participates in a number of public and private sector working groups such as the Sterling Risk-Free Rate Working Group, the Alternative Reference Rates Committee in the United States and the Working Group on Euro Risk-Free Rates, each of which is responsible for identifying the preferred risk-free rate for the relevant currency and planning transition to that risk-free rate. This includes agreeing fallback approaches for use with both new contracts and existing legacy contracts.
Deutsche Bank is fully committed to supporting LIBOR transition in line with industry timelines. Deutsche Bank’s strategy is to actively transition all LIBOR-linked products to alternative reference rates before the respective LIBOR cessation dates where viable and to minimise reliance on fallbacks. Where this is not possible, the bank’s approach is to ensure that robust fallbacks are in place. The bank has adhered to both the ISDA Benchmarks Supplement Protocol (BSP) and the ISDA 2020 IBOR Fallbacks Protocol for both new and legacy transactions.
Clients looking to transition existing IBOR-linked transactions to a new risk-free rate alternative should get in touch with their Deutsche Bank representative as soon as possible.
For further information, please contact the Private Bank’s Benchmark Reform transition team.