CURRENT AFFAIRS

Detailed explanation-1: -The State Bank of India (SBI) and Indian Oil Corporation Limited (IOCL) will sign the first Secured Overnight Financing Rate (SOFR) linked external commercial borrowing (ECB) deal.

Detailed explanation-2: -The Interbank Lending Market The amount of such lending that can take place is determined by the reserve ratio, typically set by central banks.

Detailed explanation-3: -SOFR is the main replacement for Libor in the United States. This benchmark is based on the rates U.S. financial institutions pay each other for overnight loans.

Detailed explanation-4: -Notes: State Bank of India (SBI) has recently executed two inter-bank money market deals with pricing linked to SOFR (Secured Overnight Financing Rate). SOFR is a replacement for London Inter-bank Offered Rate (LIBOR), which is global reference rate for unsecured short-term borrowing in the interbank market.

Detailed explanation-5: -With this, Union Bank of India is among the first few Banks in India to adopt ARR. LIBOR transition is one of the important events globally as it shall affect all the stakeholders in the International Market.