In a joint letter sent by the regulators to British banks and insurers, they said that the Bank’s Financial Policy Committee “has considered further potential supervisory tools that authorities could use to encourage the reduction in the stock of legacy Libor contracts to an absolute minimum before end-2021”. While they did not say what measures the Bank might take, its armoury includes ordering financial companies to hold more capital. Libor, the London Interbank Offered Rate, is the rate that banks pay to borrow money from each other in the short term and has been a key pillar of the global financial system.

https://www.thetimes.co.uk/article/bank-threatens-action-if-city-firms-dither-over-moves-to-replace-libor-nlg3lxhms