Over half of financial institutions have admitted the transition from the LIBOR interest rate-setting mechanism has been delayed by the pandemic, according to a research report from SDL, part of RWS Holdings.
While 54% of respondents say Covid-19 has disrupted the move to the Risk Free Rate regulatory framework, some 22% of financial organisations revealed they have hired translation specialists to make the deadline.
Jon Hart, president of RWS’s Regulated Industries division, said: “The global pandemic has made an already mountainous undertaking even more difficult for investment banks, market-makers and asset managers to get their internal processes aligned and ready for this change.
“While it is encouraging that the majority of respondents have been transition planning for over a year, 40% have struggled with the implementation timelines or have not yet started to plan.”
He added: “The task at hand should not be underestimated, but the impact that the transition will have on operations can still be mitigated with assistance from external agencies – companies like ours stand ready to help.”