BoE to impose Libor-linked collateral penalties
Andrew Hauser says regulators will employ carrots and sticks as deadline for transition looms
The Bank of England is to impose tougher haircuts on, and ultimately reject, collateral referencing Libor, in its latest attempt to push the market away from using the benchmark.
Regulators have said the London Interbank Offered Rate is “expected to cease” after the end of 2021. However, some segments of the financial market have been quicker to adapt than others.
In remarks today (February 26), BoE executive director for markets, Andrew Hauser, said the use of the BoE’s replacement to Libor
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