Information on the new SARON® benchmark interest rate

LIBOR (the London Interbank Offered Rate) will be discontinued at the end of 2021. For Swiss francs, LIBOR will be replaced by SARON® (the Swiss Average Rate Overnight). SARON® will be calculated and published daily by SIX Swiss Exchange based on transactions actually executed and prices in the Swiss money market. Please find below more information on the new SARON®.

A brief explanation of SARON®

In 2009 the Swiss National Bank (SNB) and SIX Swiss Exchange jointly developed CHF benchmark interest rates for the financial markets. Unlike LIBOR, SARON® is based on actual transactions in the Swiss money market. Interest is calculated using the daily compounded rate (SARON® Compound). This means a change of paradigm in calculation: whereas with LIBOR the interest rate was known at the start of the period, SARON® is not known until the period has ended (lookback variant).

In the fourth quarter of 2021 Bank CIC will offer two new successor products to LIBOR mortgages as well as LIBOR loans (Rollover) using SARON® as the new benchmark interest rate. Existing clients with LIBOR mortgages will be contacted about the switch in the first quarter of 2021.

Frequently asked questions

Expand/collapse all
Why is LIBOR being discontinued?
What is the difference between LIBOR and SARON®?
How is SARON® calculated?
What happens at the end of the interest rate period with a money market mortgage?
What does the switch from LIBOR to SARON® mean for you?