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What rates may be used in place of London Interbank Offered Rate (LIBOR)?

In the U.S., SOFR (Secured Overnight Financing Rate) is a replacement rate selected by a committee organized by the Federal Reserve Board called the Alternative Reference Rates Committee (ARRC). For consumer products, SOFR will be most likely the main replacement rate. SOFR is a benchmark rate based on the rates that U.S. financial institutions pay each other for overnight loans with pledged U.S. Treasury securities. However, lenders may choose rates other than SOFR as a replacement rate for LIBOR.

Last Reviewed: April 2021

Please note: The terms "bank" and "banks" used in these answers generally refer to national banks, federal savings associations, and federal branches or agencies of foreign banking organizations that are regulated by the Office of the Comptroller of the Currency (OCC). Find out if the OCC regulates your bank. Information provided on should not be construed as legal advice or a legal opinion of the OCC.

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