A Network of the National Association of State Treasurers
Policy Update:

U.S. Multi-Agency Response to LIBOR Announcements

London skyline at dusk.
Brian Egan, Policy Director, NAST

This morning, the Federal Reserve Board of Governors, Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) released a statement encouraging banks to cease entering into new contracts that use USD LIBOR as a reference rate as soon as practicable and in any event by December 31, 2021, in order to facilitate an orderly—and safe and sound— LIBOR transition.

A number of variable rate municipal securities and other financial products used by state governments may reference LIBOR as a benchmark rate. Issuers should continue to assess their exposure to LIBOR and make plans now for the end of LIBOR. NAST serves on the LIBOR Taskforce led by the Government Finance Officers Association (GFOA).