I'll focus on the developments since last year's announcement by the UK Financial Conduct Authority (FCA) on the future of LIBOR. In particular, I will highlight the important role for ‘risk-free’ interest rates as an alternative to credit-based benchmarks such as LIBOR.
To this end, the Bundesbank regularly publishes a set of indicators on its website.3 Minimum debt sustainability standards should be imposed only once these indicators begin to show signs of a threat to the stability of the financial system. In order for such requirements to meet their target and to mitigate side effects, a careful assessment of the consequences will be necessary.