“Such a shift is necessary given the likely discontinuation of USD LIBOR, following the announcement by the UK regulatory authorities that the benchmark will not be sustained by regulatory powers after end-2021,” the Association of Banks in Singapore and the Singapore Foreign Exchange Market Committee said in a statement. SOR relies on USD LIBOR in its computation methodology.
The group has identified SORA as the best alternative and the central bank has set up an industry-led committee to work with businesses and customers to smooth the transition.
