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Financial Institution Letter |
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Answers to Frequently Asked Questions about the Impact of
London Interbank Offered Rate (LIBOR) Transitions
on Regulatory Capital Instruments
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Summary:
The Federal Deposit Insurance Corporation (FDIC) is issuing answers to frequently asked questions (FAQs) about the impact of LIBOR transitions on regulatory capital instruments under 12 CFR 324. Among other things, the FAQs address the issue of changing a reference rate from LIBOR to an alternative rate and clarify that such a transition would not change the capital treatment of the instrument, provided the alternative rate is economically equivalent with the LIBOR-based rate. The Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System are issuing similar FAQs.
The FAQs can be found on the FDIC's website.
Distribution:
FDIC-Supervised Institutions
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