CBiBank successfully implements new TERM SOFR benchmark interest rate for USD loans
NEW YORK, July 22 10, 2022 (GLOBE NEWSWIRE) — In 2017, the Alternative Reference Rates Committee (ARRC), a financial industry group convened by the Federal Reserve and the New York Fed, recommended the use of the Secured Overnight Funding Rate (SOFR) instead of US dollar LIBOR, and financial products based on SOFR began to be traded in financial markets in the second half of 2018. Since the launch of SOFR, LIBOR (London Interbank Offered Rate), which has played a role important in the service industry for more than 40 years, has been phased out, in one of the major changes in the international financial market in recent years.
Following the manipulation scandal and the financial crisis, the UK’s Financial Conduct Authority (FCA) announced in July 2017 that LIBOR would withdraw all publications by 2021. On March 5, 2021, the Financial Conduct Authority announced stated that the USD 1-week and 2-month LIBOR durations will cease immediately after December 31, 2021, while the remaining USD LIBOR durations will cease to appear after June 30, 2023.
CBiBank, an emerging commercial bank in the United States, successfully achieved the TERM SOFR benchmark rate for US dollar loans in 2021, demonstrating its keen sense of financial product innovation and continuous improvement of banking expertise.
Removing LIBOR from the global stage is key to reforming the international benchmark interest rate in the global financial market, which poses a significant challenge for global financial institutions and trading companies. Reflecting its professionalism in light of these challenges, CBiBank is focused on meeting the needs of global trading companies by adjusting lending products and performing timely system maintenance, updating contract texts and credit quotes. interests and providing customers with professional solutions.
According to public information, CBiBank is newly established in the commercial market, holds a US commercial banking license and is regulated by the US Banking Supervision Agency. It is a member of numerous institutions including the International RMB Clearing (CIPS). With rapid business growth in Asia-Pacific and other regions, CBiBank has expanded its global cross-border financial business to serve tens of thousands of business companies and individuals. Depending on the needs of commercial companies and individuals opening offshore accounts, CBiBank fully supports the receipt and payment of major global commercial currencies such as USD, EUR and offshore RMB, and supports various methods cross-border payment methods such as physical trade, trade in services, investment and finance, and e-commerce platforms.
In the context of reformed international benchmark interest rates, CBiBank seeks to leverage its past experience with its continuous professional expertise, to fully meet customers’ financing needs, reduce costs and increase business efficiency, and further strengthen global business ventures.
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