UAE Banks Federation organises workshop on interbank benchmark rate transition

UAE Banks Federation organises workshop on interbank benchmark rate transition

Abu Dhabi, United Arab Emirates:

UAE Banks Federation (UBF), the representative and unified voice of banks in the UAE, on 20th February, organised a virtual workshop on transitioning from the London Interbank Offered Rate (LIBOR) to risk-free alternative interest rates (RFRs) such as the Secured Overnight Financing Rate (SOFR) and its impact on the banking sector and customers. The workshop was attended by several banking experts and federation members.

The LIBOR-SOFR transition is an important issue facing the global banking sector, as the interbank rate is the reference rate at which fixed or flexible interest rates are calculated on loans, receivables and payments from customers and are used in many financial transactions between banks and financial institutions.

The workshop was organised as part of UAE Banks Federation's role in providing a valuable platform for the exchanging ideas, experiences and collaboration on various issues concerning the banking sector, keeping abreast of the latest developments and trends, and raising awareness in order to consolidate the UAE's leadership position among the most prominent financial and banking centres worldwide.

The workshop reviewed the necessary preparations for the transition and ways to plan and manage the business through this phase while mitigating risks that banks and customers might face,