There was concern that the international interest rate index called "LIBOR", which had been used in a wide range of financial transactions, would be abolished and cause confusion, but in Japan, the transition to the new index was completed in almost all transactions without confusion. It was found in a survey by the Bank of Japan and others.
LIBOR is one of the international interest rate indicators and has been used in a wide range of financial transactions such as bank loans and corporate bond issuance.
However, following the discovery of tampering by financial institutions in Europe and the United States, it was decided that the yen and euro would be abolished at the end of last year, and the dollar would be abolished at the end of June next year. Concerns were widespread, saying that many financial transactions would be disrupted, including the inability to do so.
As a result of investigations by the Bank of Japan and private financial institutions, it was found that the transition was completed in 98% of general loans and 99% of bonds and derivative transactions.
Since there was no confusion of concern, the Bank of Japan and domestic financial institutions will continue to work on responding to the dollar LIBOR, which will be abolished at the end of June next year, and improving the reliability of new indicators.
Satoshi Otani, Director General of the Financial Markets Bureau of the Bank of Japan, said, "We were able to respond extremely smoothly with the cooperation of a wide range of stakeholders. Trading of new interest rate indicators may pose practical challenges, and the market is being coordinated with overseas authorities. I want to support the activities of those involved. "