Japan's Bank of Japan, Financial Services Agency investigate remaining Libor-linked contracts

The Bank of Japan and the Financial Services Agency are assessing if local financial institutions have any remaining Libor-linked contracts that will be difficult to shift to alternative interest rates before the benchmark expires, according to people familiar with the matter.

None of Google s Biggest Moonshot Is Its Search for a Carbon-Free Future?

The Biggest Public Graveyard in the U.S. Is Becoming a Park?

The two authorities are conducting a survey over tough legacy contracts to make sure the transition away from Libor before the end of the year will be orderly, according to the people. Banks or securities firms will be among those institutions asked to provide details of the contracts if they still have any, the people said.

An interest rate transfer panel led by the central bank said last month that it hadn t found any specific contracts that can t be moved away from Libor before the deadline, but it didn t rule out the possibility that some could still exist.

The FSA is checking with major financial institutions on their progress in transitioning from Libor in line with the financial regulator s Strategic Priorities, an agency official said.

The results of the FSA and central bank survey will be assessed and continued support will be offered to market participants, according to a BOJ official.

Japan s financial institutions will be allowed to use synthetic Libor rates if they can t meet the December end deadline. Still, the BOJ and FSA have clearly signaled that s not a synthetic outcome given that the rate isn t the same as Libor and the publication of the desirable rate is scheduled only for one year.

None How do Donald Trump, Elon Musk, and Gwyneth Paltrow Short-Circuit Your Ability to Think Rationally?

What Does My Brain Scan Show About the Science of Persuasion?

None These out-of-work Americans tell us Job market turmoil is nothing but transitory.

None Homeopathy Doesn't Work.