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Review of JPY LIBOR Transition and Future Initiatives

May 30, 2022

Financial Markets Department and Financial System and Bank Examination Department of the Bank of Japan
Strategy Development and Management Bureau and Supervision Bureau of the Financial Services Agency

The publication of JPY LIBOR ceased at the end of December 2021. In Japan, practical deliberations on the transition from JPY LIBOR have been carried out mainly by "Cross-Industry Committee on Japanese Yen Interest Rate Benchmarks" established in August 2018, and on this basis, a wide range of market participants have been working on the transition. During this period, the Financial Services Agency (FSA) and the Bank of Japan have supported market participants' efforts through surveys and monitoring of the use of JPY LIBOR by financial institutions and their progress in the transition. It is considered that smooth transition from JPY LIBOR has been achieved due to such cross-sectoral cooperation in the Japanese financial markets. Future challenges include the transition from USD LIBOR, for which the publication of some of the tenor settings will be ceased at the end of June 2023, and the development of infrastructure to facilitate the smooth use of JPY interest rate benchmarks to replace LIBOR. The FSA and the BOJ will continue to work together to support the efforts of market participants in cooperation with overseas authorities.

Notice

Bank of Japan Review is published by the Bank of Japan to explain recent economic and financial topics for a wide range of readers. This report, 2022-E-4, is a translation of the original Japanese version, 2022-J-8, published in May 2022.

If you have comments or questions, please contact the Financial Markets Department (E-mail : post.fmd33@boj.or.jp).