LIBOR-Replacement by Risk Free Rates

Reference interest rates that have been used for decades, including LIBOR, are criticized for allegations of manipulation against individual market participants. Regulatory authorities around the world have therefore set new regulatory requirements for reference interest rates. Only the so-called risk-free rates (RFRs) that meet these requirements may be used from January 1st, 2022.

Therefore, SAP has delivered new RFR functions for CML and TRM, which must be implemented before December 31, 2021.

The new RFR functionality also affects your portfolio: current loans that use LIBOR rates must be migrated to a new RFR product type in SAP CML. If you use reference interest rates in your CML solution, you have to act now: Offer your customers new RFR products now and convert your existing portfolio in good time.

b²tec is involved in RFR projects for SAP CML and knows what challenges you are facing. We are happy to support you in the following areas:

  1. Preliminary study: determination of the need for action, project planning
  2. Technical prerequisites: importing the necessary SAP notes, carrying out any necessary upgrade
  3. Operational readiness: setting up the new products, supplement the existing configuration
  4. Migration: conversion of the existing portfolio to RFRs