Interbank offered rates, the interest rates at which banks lend and borrow in the interbank market, are being replaced by risk-free rates, partly due to past rate-rigging scandals. In Europe, what is in itself a tricky conversion has been made even more complicated by the implementation of the wider EU Benchmark Regulation. Market participants must not delay in preparing to meet the transitional challenges as the deadline draws nearer.
Although the fine details have yet to be ironed out, there is no doubt that Brexit will have significant and long-lasting effects on financial-services institutions and businesses in the UK and the EU27. A hard-Brexit is the most jarring scenario, so what are the likely costs of a hard landing after all the negotiations are completed and the dust settles?