Interest Rate Benchmark Reform (Preparedness for the Discontinuation of LIBOR) : 日本銀行 Bank of Japan

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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 Bank's Initiatives regarding Interest Rate Benchmark Reform
Related Websites

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 in August 2018. It is expected that LIBOR will be permanently discontinued after the end of 2021. 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.

Link to Cross-Industry Committee on Japanese Yen Interest Rate Benchmarks
For Reference: JPY Risk-Free Rate (Uncollateralized Overnight Call Rate (Tokyo Overnight Average rate: TONA)) (Link to Call Money Market Data (Updated every business day))
For Reference: Term Reference Rates (Prototype Rates) (Link to QUICK's Website)

The Bank's Initiatives regarding Interest Rate Benchmark Reform

Speeches and Statements

Table : Speeches and Statements
Date	Speaker	Title
Jan. 30, 2020	AMAMIYA Masayoshi, Deputy Governor	"Interest Rate Benchmark Reform in Japan" (Speech at the Kin'yu Konwa Kai (Financial Discussion Meeting) Hosted by the Jiji Press)
Oct. 10, 2019	Masayoshi Amamiya, Deputy Governor	"Development of Asia's Capital Markets: Roles and Challenges" (Keynote Speech at the ASIFMA Annual Conference 2019)

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.

table: Joint Survey on the Use of LIBOR
Date	Title
Mar. 13, 2020	Summary of Survey Results on the Use of LIBOR and Main Actions Needed [PDF 185KB]

Other Releases

table: Other Releases
Date	Title
Oct. 22, 2020	Financial System Report (October 2020)
Aug. 11, 2020	Financial Institutions' Preparedness for LIBOR Cessation and Future Actions with a Focus on the Results of the Joint Survey by the Financial Services Agency and the Bank of Japan
Jun. 1, 2020	Letters to the CEOs of Major Financial Institutions regarding LIBOR Transition
Mar. 19, 2020	On-Site Examination Policy for Fiscal 2020 [PDF 653KB]
Apr. 17, 2019	Financial System Report (April 2019)