This information is meant to update you about the transition of a key global benchmark interest rates and the possible impacts on products you may hold with RBC.
LIBOR (London Interbank Offered Rate) is a widely referenced benchmark interest rate used globally for loans, bonds, derivatives and other floating rate instruments. LIBOR’s administrator, ICE Benchmark Administration Limited (IBA) will cease the publication of the one week and two month US dollar LIBOR settings immediately following the LIBOR publication on December 31, 2021, and the remaining US dollar LIBOR settings immediately following the LIBOR publication on June 30, 2023.
Royal Bank will replace LIBOR with the Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York.
The impact of a new interest rate will differ depending on the product or service that you have with us. If you currently have loans with us which charge interest on LIBOR based rates, your private banker will guide you through the transition to the alternative interest rate structure over the coming weeks and months.
RBC is taking actions based on guidance from domestic & international regulators, as well as industry working groups as we fully transition away from LIBOR based interest rates over the coming weeks and months.
If you do not currently have loans with us which charge a LIBOR based interest rate, no action is required on your part. If you do currently have a LIBOR based rate, please be guided by discussions with your private banker who will have the necessary information, tools and timing based on your specific products.
Your private banker will contact you to discuss a transition plan specific to your needs and current products.