Emerging markets are reforming their local benchmarks

  • Business Recorder, located in Pakistan, reports on the LIBOR transition and provides a global overview of the upcoming transition. It reports on the banks that are operating in Pakistan, the regulatory environment and the end users of loans that are linked to LIBOR.
  • From the regulators’ perspective in Pakistan, they obviously want to make sure that the financial institutions are prepared and ready to navigate this transition. They are also keen to ensure that financial market participants are not economically worse off because of this impending change.
  • At the same time to the LIBOR transition the State Bank of Pakistan may also be considering reforming the local benchmark, i.e. KIBOR in line with international best practices. Similar efforts are on-going in other emerging countries.