Yth. Nasabah BNI.
The London Interbank Offered Rate ("LIBOR") will be discontinued all over the world.
LIBOR is a benchmark rate for calculating various interest rates for financial products.
The discontinuity of LIBOR arises from the need to improve the accuracy and integrity of determining financial interest rates.
The Financial Conduct Authority (FCA) as the movement of LIBOR regulator, on March 5, 2021 has stated that LIBOR will be permanently discontinued, so that it cannot be used as a refference interest rate,by the timeline for discontinuing LIBOR as follows:
- December 31, 2021 Pound Sterling (GBP), Euro (EUR), Swiss Franc (CHF) and Japanese Yen (JPY) for all tenors, and USD for 1 (one) week and 2 (two) tenors) month.
- June 30, 2023 for USD currency for all tenors unless 1 (one) week and 2 (two) months which already discontinued at December, 2021.
Currently, PT Bank Negara Indonesia (Persero) Tbk (BNI) is being collaborated with local authorities and industry players to prepare for the transition period for the LIBOR Discontinuity to provide you by transition process fluently.
The LIBOR Replacement
The LIBOR as a benchmark rate will be changed to Overnight Risk Free Rates (RFRs) in accordance with each currency that is used, among others as follows :
Things You Should Consider
If you have any services or products at BNI that refer to LIBOR as a benchmark rate in USD with a tenor unless 1 (one) week and 2 (two) months, which will be due after June 30, 2023. Or If you have any services or products at BNI that refer to LIBOR in Pound Sterling (GBP)/ Euro (EUR)/ Swiss Franc (CHF)/ Japanese Yen (JPY) for all tenors, or in USD with tenor for 1 (one) week and 2 (two) months which will be due after December 31, 2021. Hence, the services or products will be impacted by the LIBOR discontinuity, and we will contact you continuosly or you might contact BNI.
The information on this website, is intended to provide general information and does not constitute legal, commercial and/or professional advice so that it cannot be used as a basis for conducting transactions.