• TH
    • TH
  • About BOT
    • Roles & History
    • Laws And Regulations
    • Organization And Executives
    • Committee
    • Financial Reports
    • Banknotes
    • Museum
  • Monetary Policy
    • Monetary Policy Committee (MPC)
    • Monetary Policy Target
    • Schedule of Meetings
    • MPC Meeting Results
    • MPC Publications
    • MPC Knowledge
    • Economic Conditions
    • Regional Economy
    • Research and Conference Papers
  • Financial Institutions
    • Financial Institutions Policy Committee
    • Thailand’s Financial Institutions​
    • BOT Roles and Responsibilities
    • Financial Institutions Supervision in Practice
    • Financial Institutions Policy
    • Supervision of Other Financial Corporations
    • Supervisory Coordination
  • Financial Markets
    • Monetary Operations
    • Financial Market Development
    • Foreign Exchange Market
    • Foreign Reserves Management
    • Foreign Exchange Regulations
    • Thai Reference Rate and LIBOR Transition
    • Bond Investor Registration
  • Payment Systems
    • Payment Systems Committee (PSC)
    • Payment Systems Policy
    • Oversight of Payment Systems
    • Payment Systems Act
    • Oversight of e-Payment Service Providers
    • BOT's Payment System Services
    • Payment Systems Standards
    • Payment Systems Notification & Circulars
    • Cross-border Payment
    • Financial Technology
  • Research and Conferences
    • Research
    • Conferences
    • Puey Ungphakorn Institute For Economic Research
  • Statistics
    • Financial Markets
    • Economic and Financial
    • Financial Institutions
    • Payment Systems
    • Regional Economic and Financial
    • Key Economic Indicators
    • Selected Recent Developments
    • BOT API
    • Statistics Handbook

  • Home
  • > BOT News and Speeches
  • > Press
  • > 2020
BOT News and Speeches
BOT News and Speeches
  • Press
  • Speeches
​
BOT Press Release No. 79/2020


Financial Institutions will cease issuance of new THBFIX-linked financial products
from 1 July 2021 onwards

          Due to the expected cessation of the London Interbank Offered Rate (LIBOR) by end-2021 and the resulting discontinuation of the Thai Baht Interest Rate Fixing (THBFIX) which utilizes LIBOR in its calculation, the Steering Committee on Commercial Banks’ Preparedness for LIBOR Cessation (the Committee) and the Bank of Thailand (BOT) have jointly agreed that, starting from 1 July 2021 onwards, all financial institutions will stop offering new loans and debt securities (including structured notes) which reference THBFIX. This is to limit the amount of THBFIX exposure, thereby reducing risks associated with the LIBOR transition. In this regard, new financial products may reference the new interest rate benchmark instead, namely, the Thai Overnight Repurchase Rate (THOR) which the Committee and the BOT have together developed as an alternative reference rate for THBFIX.

          When THBFIX is discontinued, the BOT will publish Fallback Rate (THBFIX) to be used for THBFIX legacy contracts. Market participants must expedite their preparatory works including contract amendments, and any necessary system and operational changes required to accommodate the usage of Fallback Rate (THBFIX). However, the Fallback Rate (THBFIX) is expected to be published only temporarily until end-2024 as there may no longer be a need to use it after 3 years while THOR-referencing products should already be widely available in the market by then.

          The BOT fully supports the industry’s preparation, especially on communications with clients as well as fair and transparent contract amendments, to ensure that participants are ready for the transition well ahead of the eventual cessation of LIBOR and THBFIX next year.

          Market participants may find additional details on the preparation for the LIBOR cessation at https://www.bot.or.th/English/FinancialMarkets/Pages/ReferenceInterestAndEndOfUseLIBOR.aspx or via the QR Code below.

Bank of Thailand
17 November 2020

Contact : Financial Markets Department
Tel : 02 283 5476
E-mail : referencerate@bot.or.th


>>​Download​​ Press  PDF
Share
Tweet
Share
Tweet
About BOT
  • Roles & History
  • Laws And Regulations
  • Organization And Executives
  • Committee
  • Financial Reports
  • Banknotes
  • Museum
Monetary Policy
  • Monetary Policy Committee (MPC)
  • Monetary Policy Target
  • Schedule of Meetings
  • MPC Meeting Results
  • MPC Publications
  • MPC Knowledge
  • Economic Conditions
  • Regional Economy
  • Research and Conference Papers
Financial Institutions
  • Financial Institutions Policy Committee
  • Thailand’s Financial Institutions​
  • BOT Roles and Responsibilities
  • Financial Institutions Supervision in Practice
  • Financial Institutions Policy
  • Supervision of Other Financial Corporations
  • Supervisory Coordination
Financial Markets
  • Monetary Operations
  • Financial Market Development
  • Foreign Exchange Market
  • Foreign Reserves Management
  • Foreign Exchange Regulations
  • Thai Reference Rate and LIBOR Transition
  • Bond Investor Registration
Payment Systems
  • Payment Systems Committee (PSC)
  • Payment Systems Policy
  • Oversight of Payment Systems
  • Payment Systems Act
  • Oversight of e-Payment Service Providers
  • BOT's Payment System Services
  • Payment Systems Standards
  • Payment Systems Notification & Circulars
  • Cross-border Payment
  • Financial Technology
Statistics
  • Financial Markets
  • Economic and Financial
  • Financial Institutions
  • Payment Systems
  • Regional Economic and Financial
  • Key Economic Indicators
  • Selected Recent Developments
  • BOT API
  • Statistics Handbook
Schedule of Releases
Terms and Conditions
Personal Data Privacy Policy
Links
FAQ
Contact Us

©2015 Bank of Thailand. All rights reserved.   ( Best View with Chrome, Safari, Firefox or IE 10 (and above) )
Inquiry/Suggestion/Complaint
E-newsletter


©2015 Bank of Thailand. All rights reserved.