NEW YORK, July 22, 2022 (GLOBE NEWSWIRE) -- In 2017, the Alternative Reference Rates Committee (ARRC), a financial industry group convened by the Federal Reserve and the New York Fed, recommended the use of the Secured Overnight Funding Rate (SOFR) instead of U.S. dollar LIBOR, and SOFR-based financial products began trading in financial markets in the second half of 2018. Since the launch of SOFR, LIBOR (London Interbank Offered Rate), which has played an important role in the global financial service industry for more than 40 years, has been phased out, in one of the major changes in the international financial market in recent years.
Following the manipulation scandal and financial crisis, the UK Financial Conduct Authority (FCA) announced in July 2017 that LIBOR would withdraw all publications by 2021. On March 5, 2021, the Financial Conduct Authority stated that the 1-week and 2-month USD LIBOR tenors will cease immediately after Dec. 31, 2021, while the remaining USD LIBOR tenors will cease publication after June 30, 2023.
CBiBank, an emerging commercial bank in the United States, successfully achieved the benchmark rate of TERM SOFR for US dollar loan lending in 2021, demonstrating its keen sense of financial product innovation and continuously improving banking expertise.
LIBOR's withdrawal from the world stage is essential for reforming the international benchmark interest rate on the global financial market, posing a significant challenge for financial institutions and global trading companies alike. Reflecting its professionalism in light of these challenges, CBiBank focuses on meeting the needs of global trading companies by adjusting loan products and conducting system maintenance on a timely basis, updating contract texts and interest quotations, and providing clients with professional solutions.
According to public information, CBiBank is newly established on the trade market, holds a US commercial bank license and is regulated by the US banking supervisory agency. It is a member of many institutions including the International RMB Clearing (CIPS). With its business growing rapidly in Asia-Pacific and other regions, CBiBank has expanded its global cross-border financial business to serve tens of thousands of trading companies and individuals. Based on the needs of trading companies and individuals opening offshore accounts, CBiBank fully supports the receipt and payment of mainstream global trade currencies such as USD, EUR, and offshore RMB, and supports various cross-border payment methods such as physical trade, service trade, investment and financing, and e-commerce platforms.
Under the backdrop of reformed international benchmark interest rates, CBiBank looks to leverage its past experience with its continued professional expertise, to fully meet the financing needs of customers, reduce costs and increase efficiency for enterprises, and further empower global trading enterprises.
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