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 Forum on Interest Rate Benchmarks
- Cross-Industry Committee on Japanese Yen Interest Rate Benchmarks
- The Bank's Initiatives regarding Interest Rate Benchmark Reform
- Related Websites
Cross-Industry Forum on Interest Rate Benchmarks
The Cross-Industry Forum on Interest Rate Benchmarks was established in March 2022 following the reorganization of the Cross-Industry Committee on Japanese Yen Interest Rate Benchmarks. The Forum provides opportunities to exchange opinions for a wide range of market participants and interest rate benchmark users, aiming to facilitate smooth transactions referencing Japanese yen interest rate benchmarks in the Japanese markets.
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 has conducted necessary deliberations with the aims to appropriately choose and use Japanese yen interest rate benchmarks, such as developing recommendations for the stocktaking of ideas on the appropriate choice and usage of Japanese yen 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 has been ceased at the end of 2021, except for certain U.S. dollar LIBOR settings.
- 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))
- It is not necessary to obtain approval for using TONA. Please read "Terms of Use for the Uncollateralized Overnight Call Rate" [PDF 37KB] before using the rate.
- For Reference: Term Reference Rates (Production Rates) (Link to QUICK's Website)
- For Reference: Publication of Term Reference Rates (Production Rates) from April 26 (Link to QUICK Benchmarks' Website)
- For Reference: TONA Averages, TONA Index (Link to QUICK's Website)
- For Reference: Roadmap to Prepare for the Discontinuation of Japanese Yen LIBOR [PDF 152KB]
The Bank's Initiatives regarding Interest Rate Benchmark Reform
Speeches and Statements
| Date | Speaker | Title |
|---|---|---|
| June 8, 2021 | AMAMIYA Masayoshi, Deputy Governor | "LIBOR Transition in the Final Stage: There will be No Deus ex Machina" (Speech at the NIKKEI Financial Online Seminar Held by Nikkei) |
| 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 JFSA, conducted a joint survey of financial institutions, including banks, securities companies, and insurance companies, regarding their use of LIBOR. The main aim of this survey is to ascertain their quantitative LIBOR exposures in preparation for the permanent cessation of LIBOR.
| Date | Title |
|---|---|
| Sept. 29, 2023 | Summary of Results of the Fifth Survey on the Use of LIBOR |
| Mar. 24, 2023 | Summary of Results of the Fourth Survey on the Use of LIBOR |
| Mar. 31, 2022 | Summary of Results of the Third Survey on the Use of LIBOR |
| May 28, 2021 | Summary of Results of the Second Survey on the Use of LIBOR |
| Mar. 13, 2020 | Summary of Survey Results on the Use of LIBOR and Main Actions Needed [PDF 185KB] |
Brief Survey on the Use of JPY LIBOR
The Bank, together with the JFSA, conducted a brief survey on the use of JPY LIBOR. This is a brief survey conducted on a smaller number of financial institutions focusing on fewer survey items than the previous surveys on the use of LIBOR, in order to swiftly grasp the number of financial products and transactions referencing JPY LIBOR, as well as the progress with the transition away from JPY LIBOR as of end-September 2021. Through this survey, it is expected that preparations for the smooth transition are promoted further at each financial institution.
| Date | Title |
|---|---|
| Nov. 1, 2021 | Summary of Results of the Brief Survey on the Use of JPY LIBOR |
Other Releases
- Financial System Report (April 2023)
- : pp. 66-67
- Financial System Report (October 2022)
- : pp. 59
- Financial System Report (April 2022)
- : pp. 67-69
- Financial System Report (October 2021)
- : pp. 59-60
- Financial System Report (April 2021)
- : pp. 62
- Financial System Report (October 2020)
- : pp. 68-69
- Financial System Report (April 2019)
- : pp. 90-91
Related Websites
- Link to "Financial Service Agency" website
- Link to "Japanese Bankers Association" website
- Link to "The Financial Stability Board" website