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The disruptive nature of the LIBOR transition will be further exacerbated by the absence of a few key factors: cen-
tralized coordination of currency working groups around the rollout, the adoption of forward-looking term rates and
standardized fallback language.
Given the slow pace of change in lending, the market stress brought on by the Covid-19 pandemic and the sheer
prevalence of LIBOR, the transition is likely to be disruptive. The end of LIBOR will significantly impact servicing pro-
cesses, customer interactions and the systems that support them.
Financing businesses have important choices to make about how they will manage the transition. Software vendors
have choices to make about how to develop solutions and services that can best enable a smooth transition.
Author:
Ronan du Halgouet
Summary
CONTENTS
01/ Executive summary
02/ Timeline & latest updates
03/ Inherent challenges
04/ Loan servicing impacts
05/ RFR experience
06/ Sopra Banking Software in
action
