Complete Story
07/24/2014
ICBA Urges Changes to New LIBOR Annual Fee
| ICBA called on the Intercontinental Exchange to revise its policy requiring all financial institutions that reference the LIBOR index in loan or investment documents to pay a new $16,000 annual fee. In a letter to ICE, ICBA explained the disproportionate impact of the fee even on community banks—even those that do not use LIBOR but share loan participants with financial institutions that use the index. The association noted that the policy—reported in Tuesday’s ICBA NewsWatch Today—would hinder lending to many categories of borrowers, require the use of other indexes or force many community banks to amend existing loan agreements. ICBA’s letter raised several questions regarding the new fees and made recommendations that, if adopted, would largely address community bank concerns. |
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