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OCC Bulletin 2021-48
October 20, 2021
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Chief Executive Officers of All National Banks, Federal Savings Associations, and Federal Branches and Agencies; Department and Division Heads; All Examining Personnel; and Other Interested Parties
The Office of the Comptroller of the Currency (OCC) and other federal financial institution regulatory agencies (collectively, the agencies),1 in conjunction with the state bank and state credit union regulators, today issued a statement to emphasize the importance of an orderly transition away from the London Interbank Offered Rate (LIBOR).
This OCC bulletin applies to community banks.2
The joint statement identifies four limited circumstances in which continuing to transact in LIBOR may be necessary to ensure a safe, sound, and orderly transition. Best practice for making use of these exceptions should include clear internal governance and oversight, given the potential increased risks with managing these positions with permanent cessation of all LIBOR tenors expected June 30, 2023.
Please contact Ang Middleton, Risk Specialist, or Chris McBride, Director for Market Risk, Treasury and Market Risk Policy, at (202) 649-6360.
Grovetta N. Gardineer
Senior Deputy Comptroller for Bank Supervision Policy
1 The federal financial institution regulatory agencies are the OCC, the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, the Consumer Financial Protection Bureau, and the National Credit Union Administration.
2 "Banks" refers collectively to national banks, federal savings associations, and federal branches and agencies of foreign banking organizations.
3 Refer to OCC Bulletin 2020-104, "LIBOR Transition: Joint Statement on U.S. Dollar LIBOR Transition." This joint statement provided three limited circumstances to continue transacting in LIBOR.