BOJ Calls for Faster Progress on Libor as Expiry Nears

The video discusses the transition to alternative benchmarks, focusing on the progress and challenges in implementing fall back provisions for financial products. It highlights the significant progress made in derivatives, with most institutions complying with international standards. However, spot products lag behind, with only a small percentage covered by fall back provisions. The transition process for yen Libor is also examined, noting efforts to accelerate the adoption of alternative benchmarks like the Tokyo term risk free rate. The video emphasizes the urgency of completing the transition for new transactions.

What percentage of financial institutions holding derivatives have complied with the fallback protocol?

• 100%

• 96%

• 75%

• 50%

What is the main concern regarding the transition process for yen Libor?

• Lack of alternative benchmarks

• Slow pace for new transactions

• Regulatory issues

• High costs involved

Which alternative benchmark to Libor was published earlier than planned?

• Secured Overnight Financing Rate

• Euro Interbank Offered Rate

• Tokyo Term Risk-Free Rate

• Tokyo Overnight Average Rate

What is the focus of the Libor Review Committee's recommendations?

• Increasing transaction fees

• Enhancing customer satisfaction

• Adhering to global standards

• Reducing market volatility

What is the current stage of the transition process for new transactions?

• Completion

• Evaluation

• Planning

• Implementation