Summary:

Title: Summary of Results of the Fifth Survey on the Use of LIBOR

Date: September 29, 2023

Issued by: Financial Services Agency (FSA) and Bank of Japan (BOJ)

Summary:

The Financial Services Agency (FSA) and the Bank of Japan (BOJ) conducted a joint survey of financial institutions in Japan, including banks, securities companies, and insurance companies, regarding their use of the London Interbank Offered Rate (LIBOR). The survey aimed to assess the progress made in the transition away from LIBOR, which is set to be discontinued in the near future.

Key Findings:

1. Transition away from LIBOR: The survey confirmed that the transition away from LIBOR is almost complete. This is the fifth survey conducted by the FSA and BOJ, with the previous surveys indicating significant progress in the transition.
2. Existing contracts with transition plans: Some financial institutions still have existing contracts that do not have transition plans in place. The FSA and BOJ will continue to monitor these institutions and require them to take necessary actions to transition away from LIBOR.
3. Synthetic USD LIBOR: The survey also highlighted that some contracts reference synthetic USD LIBOR, which will cease publication at the end of September 2024. Financial institutions will need to transition away from these contracts as well.

Future Actions:

In light of the survey results, the FSA and BOJ will continue to closely monitor financial institutions and require them to take necessary actions to transition away from LIBOR. Specifically, they will:

Monitor financial institutions with existing contracts that do not have transition plans in place
Require financial institutions to transition away from contracts referencing synthetic USD LIBOR
Provide guidance and support to financial institutions as needed to ensure a smooth transition

Conclusion:

Source:*

Financial Services Agency (FSA) and Bank of Japan (BOJ), “Summary of Results of the Fifth Survey on the Use of LIBOR””