BOJ Consults on Choice and Use of JPY Interest Rate Benchmarks
BOJ released a consultation on the appropriate choice and usage of Japanese Yen (JPY) interest rate benchmarks. The key issues subject to public comments include the fallbacks in loan and bonds and the initiatives for enhancing the robustness of term reference rates. The comment period for this consultation ends on September 30, 2020.
In July 2019, the Cross-Industry Committee on JPY Interest Rate Benchmarks launched the first public consultation on the basic approach toward the appropriate choice and usage of JPY interest rate benchmarks to deliberate on preparation for the permanent discontinuation of LIBOR after the end of 2021. The Committee published the results of the public consultation in November 2019. Since then, the Committee has deliberated on practical issues considering the results of the public consultation as well as discussions in the banking and securities industries and global developments. The purpose of this public consultation is to present the results of the deliberations of the Committee and to solicit comments on specific matters to be dealt with when fallbacks are triggered in cash products referencing JPY LIBOR from a wide range of market participants. Since the last public consultation, the Committee has deliberated on specific matters when fallbacks are triggered in bonds or loans referencing JPY LIBOR and the development of term reference rates.
Comment Due Date: September 30, 2020
Keywords: Asia Pacific, Japan, Banking, Securities, LIBOR, Benchmark Fallbacks, Interest Rate Benchmarks, Benchmark Reforms, BOJ
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