The framework has published a consultation paper seeking guidance on how to address the issue of accepting debt - linked collateral that occurs after 2021 and lacks adequate fallback provisions , as the phase out date for the benchmark rate draws closer . The framework proposes a combination of rising haircuts and eligibility restrictions ; market participants have been asked to respond by 27 September . LIBOR - linked assets are used to collateralise about 10 % of banks ’ current drawing capacity with the BoE. Relevant document : Join the revolution ! Why it makes business sense to move on from LIBOR ~ BoE ~ 27-Jun-19
The BoE has published a discussion paper seeking input on how to address the issue of accepting LIBOR-linked collateral that matures after 2021 and lacks adequate fallback provisions, as the phase out date for the benchmark rate draws closer. The paper proposes a combination of rising haircuts and eligibility restrictions; market participants have been asked to respond by 27 September. LIBOR-linked assets are used to collateralise about 10% of banks’ current drawing capacity with the BoE. Relevant document: Join the revolution! Why it makes business sense to move on from LIBOR ~ BoE ~ 27-Jun-19