“Such a shift is necessary given the likely discontinuation of USD LIBOR, following the announcement by the UK regulatory authorities that the benchmark will not be sustained by regulatory powers after end-2021,” the Association of Banks in Singapore and the Singapore Foreign Exchange Market Committee said in a statement. SOR relies on USD LIBOR in its computation methodology.
SINGAPORE (Aug 30): Singapore’s banking body on Friday said it would shift away from using Singapore dollar swap offer rates (SOR) as a key lending benchmark due to likely discontinuation of the London Interbank Offered Rate, which heavily influences SOR.
The change, which will take place over the next two years, will see products such as loans that reference the rate switched to other benchmarks such as Singapore Overnight Rate Average (SORA), Singapore Interbank Offered Rates (SIBOR) or banks’ internal funding rates.
