Bank of Ireland Benchmark Reform Hub
Benchmark rates & reform
Benchmark rates are based on an index that determines the amount payable under a financial instrument or a financial contract, or the value of a financial instrument. Banks including Bank of Ireland use benchmark rates in the provision of its products and services, most particularly in loans and interest rate hedging products. The most commonly used benchmark rate in Bank of Ireland is EURIBOR (Euro interbank offer rate).
Since 2014, financial institutions worldwide have been progressively moving towards replacing or reforming benchmark rates in what is known as Benchmark Reform. Benchmark Reform involves the introduction of new alternative reference rates to replace certain existing benchmark rates as well as the reform of other existing benchmark rates to become compliant with the EU Benchmarks Regulation. New Risk Free Rates (RFR) , which are overnight rates based on actual transactions have become the common replacement and are considered risk free or nearly risk free rates.
The EU Benchmarks Regulation, which came into effect across the EU on 1 January 2018, supports the reform process, introducing a common framework and consistent approach to benchmark regulation across the EU. It requires EU financial institutions such as Bank of Ireland, to have robust plans in place covering their usage of benchmarks, including clear fallback mechanisms, should the benchmark be unavailable for any reason.
As at 30th June 2023 the following Benchmarks, most relevant to Bank of Ireland and its customers were subject to reform;
| Benchmark (Currency) | Reform type | Alternative Rates | Date |
| EURIBOR (Euro) | Reformed | N/A | April 2021 |
| GBP LIBOR (Sterling) | Cessation | RFR SONIA
Bank of England Bank Rate |
December 2021 |
| 1 week , 12 month USD LIBOR (US Dollar) | Cessation | RFR SOFR
Average SOFR |
December 2021 |
| JPY LIBOR (Japanese Yen) | Cessation | RFR TONA
Bank of Japan Rate |
December 2021 |
| CHF LIBOR (Swiss Franc) | Cessation | RFR SARON
Swiss National Bank Rate |
December 2021 |
| EONIA (Euro) | Cessation | RFR €STR | December 2021 |
| All other USD LIBOR (US Dollar) | Cessation | RFR SOFR
Term SOFR |
June 2023 |
| CDOR (Canadian Dollar) | Cessation | RFR CORRA | June 2024 |
If you have any questions in relation to Benchmark Reform please contact your Bank of Ireland Relationship Manager
Benchmarks continue to be under review and further reform may happen in the future. Further information on Benchmark Reform can be found on the following websites;
UK – https://www.bankofengland.co.uk/markets/transition-to-sterling-risk-free-rates-from-libor