Interest Rate Benchmark Reform (Preparedness for the Discontinuation of LIBOR)
The Bank of Japan, in coordination with relevant institutions including the Financial Services Agency (FSA), supports market-wide initiatives and financial institutions' efforts to prepare for the permanent discontinuation of LIBOR.
Cross-Industry Committee on Japanese Yen Interest Rate Benchmarks
The Cross-Industry Committee on Japanese Yen Interest Rate Benchmarks, consisting of a wide range of parties including financial institutions, institutional investors, and non-financial corporates, was established to prepare for permanent cessation of LIBOR* in August 2018. The Committee conducts necessary deliberations with the aims to appropriately choose and use Japanese yen (JPY) interest rate benchmarks, such as developing recommendations for the stocktaking of ideas on the appropriate choice and usage of JPY interest rate benchmarks, identifying specific challenges, proposing solutions, and developing transition plans. For details of the deliberations, please see the following link.
- The panel-based LIBOR will cease at the end of 2021, except for certain US dollar LIBOR settings.
The Bank's Initiatives regarding Interest Rate Benchmark Reform
Speeches and Statements
Joint Survey on the Use of LIBOR
The Bank, together with the FSA, is conducting a joint survey of financial institutions, including banks, securities companies, and insurance companies, regarding their use of LIBOR. The aim of this survey is to ascertain their quantitative LIBOR exposures, the adoption of alternative benchmarks to LIBOR, and the status of establishing a framework for deliberations on alternative benchmarks. It is expected that this survey will encourage financial institutions to push ahead with preparations for the smooth transition.
Other Releases
Financial System Report (October 2020) : pp. 68-69
Financial System Report (April 2019) : pp. 90-91
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