banks’ syndicated loans falling behind LIBOR transition By Reuters
ZURICH, Reuters – While banks in Switzerland appear to be on the right track regarding the transition to phaseout London Interbank Offered rate (LIBOR), reference rates rates, the financial market supervisor FINMA stated on Thursday that some products like syndicated loans have fallen behind.
“FINMA believes that syndicated loans are the most important area for improvement. Syndicated loans are those where two or more lenders collaborate to lend funds.” FINMA stated in a statement. It also noted that the amount of syndicated loan agreements without strong fallback clauses has only fallen by 28% from the beginning of 2021.
“FINMA reiterates its call to banks to contact syndicate banks as well as borrowers to modify the credit agreements and ensure legal certainty in the future.
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