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Banking / white paper
Sanjukta Dhar
Domain Consultant, CRO Strategic Initiatives, Banking, Financial Services and Insurance, TCS
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The Financial Conduct Authority announced that the LIBOR panel bank submission will not be mandatory from end 2021; consequently, LIBOR as a benchmark rate may not be available thereafter. The impact of LIBOR transition on the financial services industry will be high given that it is used to price and hedge cash and derivative instruments. Banks will need to gear up for LIBOR transition by efficiently handling the risks involved in identifying and transitioning to a new benchmark rate.
Preparing for LIBOR transition will require banks to:
In our view, leveraging cognitive automation techniques and artificial intelligence technologies such as machine learning and natural language processing will enable seamless LIBOR transition and achieve the above objectives.
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