interest rates

Fed’s Quarles aims to clear up confusion about Libor deadline


Legacy contracts using the London interbank offered rate — which is set to be phased out at the end of this year — were granted a reprieve to mid-2023. However, there is no wiggle room on when the rate will expire for new deals, said Federal Reserve Vice Chairman Randal Quarles.



NCUA’s derivatives rule could be boon for large credit unions


Under a proposed rule change, credit unions would no longer need to seek pre-approval from the regulator before entering into interest rate swaps, speeding up transactions for some of the industry’s biggest institutions that already hold over 80% of total assets.


Illinois caps interest rates on consumer loans at 36%


It is the 18th state to pass a law imposing rate caps on all consumer loans, including payday and car title loans.


Global banks warn of market chaos if court rushes Libor exit


Some of the world’s biggest banks are urging a U.S. judge not to immediately terminate Libor after a group of borrowers filed suit claiming the benchmark was the work of a “price-fixing cartel.”


Banks' net interest margins plunged to record lows in 3Q


The Federal Deposit Insurance Corp.’s latest report on the industry’s health had positive news about the earnings recovery last quarter, but it also showed that low interest rates amid continuing economic uncertainty are putting downward pressure on asset yields.


NCUA moves to loosen derivatives rule for credit unions


The credit union regulator has held back in allowing the use of derivatives but has released a proposal that would remove red tape for some larger institutions.


Leveraged lending has avoided pandemic hit. Will that last?


Defaults have been milder than expected thanks to government relief and stricter underwriting. But with the crisis dragging on and policymakers unable to agree on a stimulus plan, loans to highly indebted companies remain at risk.