On 16 December 2022, the Financial Stability Board (FSB) issued a progress report on the transition from LIBOR and other benchmarks.

The progress report:

• Provides an overview of LIBOR transition efforts, covering success to date and remaining transition steps, including anchoring the financial system in overnight risk-free rates (RFRs).
• Provides updates from member jurisdictions on other benchmark transition efforts.
• Presents findings from the FSB’s follow-up questionnaire on supervisory issues related to LIBOR transition.

The progress report makes the following conclusions:

• Roughly a decade into the transition away from LIBOR, significant progress has been made in improving the resilience of the benchmark reference rate landscape, particularly over the past year as most LIBOR settings have ceased.
• Activity has fundamentally shifted from use of LIBOR towards use of more robust reference rates. Strong progress in particular has been observed in transition away from USD LIBOR to SOFR in 2022.
• The FSB encourages authorities and market participants alike to keep momentum for the last stage of transition, which is important due to the extensive use of US dollar LIBOR across jurisdictions.
• Achieving market stability in the longer term requires, when it comes to markets, relying on benchmark rates that have a strong reference foundation, which means anchoring the financial system in overnight RFRs. It is essential that extensively used benchmarks are especially robust and reflect credible, liquid underlying markets.
• At the international level, a coordinated approach to addressing the remaining issues, such as contracts, continues to be of the essence.