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BOARD OF GOVERNORS

OF THE

FEDERAL RESERVE SYSTEM

WASHINGTON, D.C. 20551

DIVISION OF SUPERVISION

AND REGULATION

DIVISION OF CONSUMER AND

COMMUNITY AFFAIRS

SR 23-2 

CA 23-3 

April 26, 2023

TO THE OFFICER IN CHARGE OF SUPERVISION AND APPROPRIATE 

SUPERVISORY AND EXAMINATION STAFF AT EACH FEDERAL RESERVE BANK 

AND INSTITUTION SUPERVISED BY THE FEDERAL RESERVE

SUBJECT: Joint Statement on Completing the LIBOR Transition

The Board of Governors of the Federal Reserve System, Federal Deposit Insurance 

Corporation, Office of the Comptroller of the Currency, the National Credit Union 

Administration, and the Consumer Financial Protection Bureau (collectively, the agencies)

issued a statement to remind supervised institutions that U.S. dollar (USD) LIBOR panels will 

end on June 30, 2023. The agencies also reiterate their expectations that institutions with USD 

LIBOR exposure should complete their transition of remaining LIBOR contracts away from 

LIBOR as soon as practicable. As noted in prior interagency statements, failure to adequately 

prepare for LIBOR’s discontinuance could undermine financial stability and institutions’ safety 

and soundness and create litigation, operational, and consumer protection risks. 

Reserve Banks are asked to distribute this letter to the supervised organizations in their

districts and to appropriate supervisory staff. In addition, questions may be sent via the Board’s 

public website.1

1 See http://www.federalreserve.gov/apps/contactus/feedback.aspx.

Applicability: This letter applies to all institutions supervised by the Federal Reserve, including 

those with $10 billion or less in consolidated assets.
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Michael S. Gibson Eric S. Belsky

Director Director

Division of Division of Consumer

Supervision and Regulation and Community Affairs

Attachment:

• Joint Statement on Completing the LIBOR Transition
 

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___________________________________________________________________________________ 

Board of Governors of the Federal Reserve System 

Consumer Financial Protection Bureau 

Federal Deposit Insurance Corporation 

National Credit Union Administration 

Office of the Comptroller of the Currency 

State Bank and Credit Union Regulators

___________________________________________________________________________________ 

April 26, 2023 

Joint Statement on Completing the LIBOR Transition

 

Purpose

Five federal financial institution regulatory agencies1 in conjunction with the state bank and state credit 

union regulators (collectively, agencies) are jointly issuing this statement to remind supervised

institutions that U.S. dollar (USD) LIBOR panels will end on June 30, 2023. The agencies also reiterate 

their expectations that institutions with USD LIBOR exposure should complete their transition of 

remaining LIBOR contracts as soon as practicable. As noted in prior interagency statements, failure to 

adequately prepare for LIBOR’s discontinuance could undermine financial stability and institutions’ 

safety and soundness and create litigation, operational, and consumer protection risks.2

Supervisory considerations

The agencies expect institutions to have taken all necessary steps to prepare for an orderly transition 

away from LIBOR by June 30, 2023. 

Expeditious transition of remaining legacy contracts 

Institutions have reported significant progress in their LIBOR transition efforts; however, work remains 

for institutions to prepare for the end of the USD LIBOR panels. Institutions are encouraged to ensure 

that replacement alternative rates are negotiated where needed and in place in advance of June 30, 2023, 

for all LIBOR-referencing financial contracts including investments, derivatives, and loans. Institutions 

are also encouraged to work expeditiously with their customers and coordinate with other institutions as 

needed in these efforts. 

In order to facilitate the transition, Congress enacted the Adjustable Interest Rate (LIBOR) Act (LIBOR 

Act) to provide a targeted solution for so-called “tough legacy contracts,” which are contracts that 

reference USD LIBOR and will not mature by June 30, 2023, but which lack adequate fallback 

provisions providing for a clearly defined or practicable replacement benchmark following the cessation 

1 The federal financial institution regulatory agencies are the Board of Governors of the Federal Reserve System (Board), the 

Consumer Financial Protection Bureau (CFPB), the Federal Deposit Insurance Corporation (FDIC), the National Credit 

Union Administration (NCUA), and the Office of the Comptroller of the Currency (OCC). 2 See, e.g., the FFIEC Joint Statement on Managing the LIBOR Transition (July 2020) and the Interagency Statement on 

Managing the LIBOR Transition (October 2021). 
 

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of USD LIBOR.3 In January 2023, the Federal Reserve Board published a regulation that implements 

the LIBOR Act.4

 

Examiners will continue monitoring efforts through 2023 to ensure that institutions have moved their 

contracts away from LIBOR in a safe and sound manner and in compliance with applicable legal 

requirements.

Appropriate alternative rate selection

The agencies remind institutions that safe-and-sound practices include conducting the due diligence 

necessary to ensure that alternative rate selections are appropriate for the institution's products, risk 

profile, risk management capabilities, customer and funding needs, and operational capabilities. As part 

of their due diligence, institutions should understand how their chosen reference rate is constructed and 

be aware of any fragilities associated with that rate and the markets that underlie it.

3 Public Law 117-103, div. U, codified at 12 U.S.C. 5801 et seq. 4 88 Fed. Reg. 5,204 (Jan. 26, 2023).