Foreword

Dear Ladies and Gentlemen,

The London Interbank Offered Rate (LIBOR) has already been consigned to the past, even if rates will continue to be published until at least the end of 2021.

This marks the end of an era in London, where since the mid-1980s LIBOR had become a globally respected and dominant benchmark. The importance of London as a financial centre among investors, asset managers, traders and analysts was underlined by the LIBOR acronym. However, success also entails a certain responsibility.

In the aftermath of the global financial crisis and the exposure of manipulation in the setting of LIBOR rates, the G20 countries issued a call for reform of the scandal-ridden benchmarks. Now, this reform is entering a crucial phase and will have an impact on financial instruments worth trillions of dollars.

In the euro area, IBOR reform also applies to EURIBOR and EONIA, as the new regulations mean that the previous method of determining these European benchmarks is no longer fit for purpose. The aim is for the new benchmarks to be more market-based and transparent, which has meanwhile been achieved through reforms and transition.

The significance of the reform goes beyond its consequences for a large number of financial transactions. The credibility of the financial sector suffered during the financial crisis and in particular as a result of the LIBOR scandals. It is vital that this is put right and that long-term confidence in banks and the monetary economy is restored.

We look forward to holding positive and constructive discussions with you so that we are able to provide you with the best possible support in transitioning to the new benchmarks.