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The American Financial Exchange (AFX) today announced a new advertising campaign to raise awareness of AMERIBOR® - a credit-sensitive interest rate that is a leading successor to the LIBOR interest rate benchmark.
In a recent pilot survey conducted by AFX, most banks indicated that to continue to expand wider AMERIBOR loan usage, further industry education and more customer index awareness would be most beneficial. As one way to address this need, the AMERIBOR ad campaign, promoting the benefits of institutions seeking a credit-sensitive rate, will appear throughout 2022 on the ABA Banking Journal homepage. See the ad’s landing page here.
The survey responses revealed that:
- AMERIBOR Term 30 was the preferred benchmark being used by 70 percent of the respondents with AMERIBOR loans.
- About 65 percent of the positive respondents have issued between 1 and 50 loans tied to AMERIBOR within the last 12 months, with 35 percent stating they had originated between 50 and 200 AMERIBOR loans.
- While the majority of positive respondents indicated originating between $1 million and $50 million in AMERIBOR loans, 25 percent indicated $50 - $100 million originated and 18 percent with over $200 million in AMERIBOR loans originated
The passage of section 106 of the U.S. Omnibus Appropriations Bill earlier this year supports choice in selection of replacement benchmarks to suit the needs of individual banks, companies, and institutions. This survey also suggests that the legislative clarity is important for facilitating the widespread adoption of AMERIBOR.
