Temenos has updated its banking software products to help banks transition from the London Interbank Offered Rate (LIBOR) to alternative risk-free rates (RFRs), which is set to be at year-end 2021.
The UK’s Financial Conduct Authority, Bank of England and members of the working group on sterling risk-free reference rates have confirmed that the target date for the retirement of LIBOR stands despite the impact of COVID-19 on financial firms.
The software, which was developed in collaboration with its customers, Temenos Transact, Temenos Infinity and Temenos Fund Administration, covers various banking products including corporate loans, floating-rate notes, and interest-rate swaps.
Additionally, the banking software company is offering a migration dashboard to help financial institutions as they embark on their transition in order to update millions of adjustable-rate contracts.
Adam Gable, product director of financial crime, treasury and risk at Temenos said: “Temenos is working closely with its clients to ensure they achieve a timely transition to alternative reference rates through planning, testing and implementation, to ensure the migration has minimal impact on operations and interest rate exposure.”
He added: “Moving away from LIBOR to alternative rates is a complex task but it presents an opportunity for banks to modernise their IT infrastructure with functionally rich banking software and ensure that they add value and continue to give outstanding services to their customers.”
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