As part of the global benchmark reform the central objective of which is to make interest rate indices more robust, the ECB set the transition spread from EONIA to the new overnight rate €STR at 8½ bp back in October 2019. The working group on euro-risk-free rates encourages...
Accountants have been debating whether coronavirus will be seen as an adjusting event for financial statements closing on 31 December 2019 or whether it will be seen as one that impacts 2020 financial year-ends and onwards. The consensus it is that it will very largely be seen...
Day by day, individuals, companies and governments are assessing the impact of the coronavirus on public health and the global and national economies. Very little is certain except that it is having a wide-ranging impact and will affect 2020 reporting periods and onward in...
The new year brings with it new phases in the transition out of IBOR (InterBank Offered Rates). And the momentum is increasing. In 2020, there will be significant milestones in the transition, and for the first time, cash will begin to change hands.The cash compensations will...
Banking via cell phone has spread faster than most people thought possible. It is Africa’s latest success story, with companies like Kenya’s M-Pesa at the forefront of technology evolution with a user base of more than 37 million.In South Africa, the regulator – promoted by...
I have seen quite a few firms advertising their support for companies during the IBOR transition using buzzwords like artificial intelligence and machine learning. They seem to say that these technologies can ease the pain and suffering of companies that need to change to a...
I recently saw a headline in the Financial Times that said some big banks think that shifting out of LIBOR may cost more than Brexit. I am sure that headline caused a collective gasp in some corners of the United Kingdom.It is hard to say which one of these monumental changes...
I’m a fan of James Bond films and can think of at least three films that included scenes on a train. There’s something high-stakes and action-filled about trains on the move.I see some parallels between moving trains and the transition away from Inter-Bank Overnight Rates...
Less than two weeks ago, the European Central Bank (ECB) published the euro short-term rate (€STR) for the first time. This marked a milestone for the ECB in the transition efforts on IBOR reform. Since the introduction of the euro, it is the first time that a crucial euro...
At the end of 2017, the German federal financial supervisory authority (BaFin) released a circular providing details about its requirements for IT security and processes at German credit institutions. Called BAIT, or Bankaufsichtliche Anforderungen an die IT, the circular...