Banks warned dragging feet on Libor transition could lead to PPI-style claims
Banks have been warned that their tardiness in switching away from the Libor benchmark could leave them open to compensation claims, similar to those that followed the UK's £50bn scandal of banks mis-selling payment protection insurance. However, bankers involved in the process say they are working hard to complete the transition.
The Bank of England will stop requesting Libor reporting from banks at the end of 2021. So far, the bond market has taken up the shift towards new benchmarks readily. Sonia-linked sterling floating rate notes are now a regular product, for example.The loan and derivatives markets are still ...
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