NCUA, the Consumer Financial Protection Bureau (CFPB) and other federal financial regulators issued a joint statement on the London Inter-Bank Offered Rate (LIBOR) transition.

LIBOR is used as a reference interest rate for many consumer financial products. The LIBOR administrator will stop publishing the one-week and two-month LIBOR settings Dec. 31, and remaining LIBOR settings will cease immediately following the LIBOR publication on June 30, 2023.

NCUA encourages all federally insured credit unions to transition away from using U.S. dollar LIBOR as a reference rate as soon as possible, but no later than Dec. 31, and to ensure existing contracts have robust fallback language that includes a clearly defined alternative reference rate.

NCUA also issued a Letter to Credit Unions (21-CU-03) earlier this year on the transition.

The CFPB issued a proposal and FAQs relating to the LIBOR transition in June 2020, and expects to issue a final rule addressing the expiration of LIBOR in January 2022.