Discontinuation of Libor would result in ‘significant systemic risk’, Powell says

jerome-powell1
Jerome Powell, Federal Reserve Board

The discontinuation of US dollar Libor rate publication could pose a "significant systemic risk" to banks, a Federal Reserve Board governor said on June 21.

Speaking in New York, Jerome Powell noted money market borrowing by banks that underlies the US dollar Libor has experienced a "secular decline".

"Ongoing regulatory reforms and changing market structures" raised the question of whether transactions underlying Libor would become even "scarcer" in the future, he said. "Libor could eventually

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