SBI set to embrace rate benchmarks necessitated by LIBOR
- ByTejika Bajaj | December 30, 2021
The State Bank of India recently announced that it is officially ready to embrace the new interest rate benchmarks necessitated as it transitions from LIBOR (London Interbank Offered Rate). This announcement comes at the wake of LIBOR ceasing to existing as a medium for day-to-day business and product pricing.
The SBI revealed in an official statement that the systems of the bank are now equipped and aligned to support transactions linked to ARR (Alternate Reference Rates). The bank has already initiated its offerings based on the ARR system in multiple local as well as foreign branches.
Talking about the transition and SBI’s future plans, the Managing Director of State Bank of India, Ashwini Kumar Tewari said, “LIBOR Transition is a significant financial event for international financial markets. As the country’s largest bank, SBI has been assiduously tracking the global developments in the LIBOR space to align with the best practices and has proactively modified its systems and processes to embrace the change from LIBOR to ARR.”
In an attempt to educate and keep their customers abreast with the changes in the interest rate and the ARR system in general, the financial institution has also initiated various Knowledge Sharing Sessions for its customers and extensive client groups.
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