In a recent article in the BIS Quarterly Review, authors Schrimpf and Sushko (2019) provide an overview of the LIBOR transition to risk-free rates led by the FSB Official Sector Steering Group (OSSG). They also argue that rates like LIBOR may be desirable because banks "require a lending benchmark that behaves not too differently from the rates at which they raise funding."2 In this note, we examine how correlated LIBOR actually has been with available measures of bank funding costs. We show that U.S. banks' reliance on the wholesale unsecured markets that are meant to underpin LIBOR has diminished ... (full story)