Release of the Results of the "Second Public Consultation on the Appropriate Choice and Usage of Japanese Yen Interest Rate Benchmarks" (the Cross-Industry Committee on Japanese Yen Interest Rate Benchmarks)

November 30, 2020
Financial Markets Department
Bank of Japan

The Cross-Industry Committee on Japanese Yen Interest Rate Benchmarks, today, released "Final Report on the Results of the Second Public Consultation on the Appropriate Choice and Usage of Japanese Yen Interest Rate Benchmarks" [PDF 429KB] .

Since 2014, efforts have been made on interest rate benchmark reform based on the recommendation by the Financial Stability Board (FSB) to promote the usage of interest rate benchmarks in ways suited to the characteristics of financial instruments and financial transactions. However, since concerns about the sustainability of LIBOR beyond the end of 2021 have rapidly heightened, recent discussions have been centering on preparations for the discontinuation of LIBOR.

The Cross-Industry Committee on Japanese Yen Interest Rate Benchmarks published the "Second Public Consultation on the Appropriate Choice and Usage of Japanese Yen Interest Rate Benchmarks [PDF 832KB] " to solicit comments on specific matters to be dealt with when fallbacks are triggered in cash products referencing Japanese yen LIBOR from a wide range of relevant parties from August 7 to September 30, 2020.

As a result of the second public consultation, entities from a wide range of industries such as financial institutions, institutional investors, and non-financial corporates provided their comments. The purpose of this report is to present the results of the second public consultation, based on the responses received. For details including related materials, please refer to the "Cross-Industry Committee on Japanese Yen Interest Rate Benchmarks" page of the Bank of Japan's website.

Inquiries

Market Infrastructure Division, Financial Markets Department

E-mail : post.fmd33@boj.or.jp