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Asian banks on watch with trillion-dollar Libor transition

Lenders here at 'Phase Zero' as they wait out global shift to alternate reference rates

Published Thu, Feb 7, 2019 · 09:50 PM

Singapore

TRILLIONS of dollars globally are priced to Libor, the scandal-tainted benchmark that is due to vanish by end-2021 - and this massive transition may catch Asian banks wrong-footed with the speed of its phase-out.

The financial markets are transitioning to alternate reference rates to better reflect true borrowing costs, with this seismic move estimated to be of the same scale as the euro transition.

But audit group EY told The Business Times that lenders here are just not as prepared for the impact of the Libor transition on their balance sheets as their global peers.

Its global IBOR (Interbank Offer Rates) leade…

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