Benchmark rates are based on an index that determines the amount payable under a financial instrument or a financial contract, or the value of a financial instrument. Banks including Bank of Ireland use benchmark rates in the provision of its products and services, most particularly in loans and interest rate hedging products. The most commonly used benchmark rate in Bank of Ireland is EURIBOR (Euro interbank offer rate).

Since 2014, financial institutions worldwide have been progressively moving towards replacing or reforming benchmark rates in what is known as Benchmark Reform. Benchmark Reform involves the introduction of new alternative reference rates to replace certain existing benchmark rates as well as the reform of other existing benchmark rates to become compliant with the EU Benchmarks Regulation. New Risk Free Rates (RFR) , which are overnight rates based on actual transactions have become the common replacement and are considered risk free or nearly risk free rates.

The EU Benchmarks Regulation, which came into effect across the EU on 1 January 2018, supports the reform process, introducing a common framework and consistent approach to benchmark regulation across the EU. It requires EU financial institutions such as Bank of Ireland, to have robust plans in place covering their usage of benchmarks, including clear fallback mechanisms, should the benchmark be unavailable for any reason.

As at 30th June 2023 the following Benchmarks, most relevant to Bank of Ireland and its customers were subject to reform:

Benchmark (Currency)	Reform Type	Alternative Rates	Date
EURIBOR (Euro)	Reformed	N/A	April 2021
GBP LIBOR (Sterling)	Cessation	RFR SONIA Bank of England Bank Rate	December 2021
1 week , 12 month USD LIBOR (US Dollar)	Cessation	RFR SOFR Average SOFR	December 2021
JPY LIBOR (Japanese Yen)	Cessation	RFR TONA Bank of Japan Rate	December 2021
CHF LIBOR (Swiss Franc)	Cessation	RFR SARON Swiss National Bank Rate	December 2021
EONIA (Euro)	Cessation	RFR €STR	December 2021
All other USD LIBOR (US Dollar)	Cessation	RFR SOFR Term SOFR	June 2023
CDOR (Canadian Dollar)	Cessation	RFR CORRA	June 2024

If you have any questions in relation to Benchmark Reform please contact your Bank of Ireland Relationship Manager.

Benchmarks continue to be under review and further reform may happen in the future. Further information on Benchmark Reform can be found on the following websites:

Europe – https://www.ecb.europa.eu/paym/initiatives/interest_rate_benchmarks/WG_euro_risk-free_rates/html/index.en.html
UK – https://www.bankofengland.co.uk/markets/transition-to-sterling-risk-free-rates-from-libor
US – https://www.newyorkfed.org/arrc