Toward interest rate benchmark reform Given that LIBOR is widely used in a range of areas, a decrease in its reliability would give rise not only to concerns about the formation of fair prices in financial markets, including the derivative market, but also could threaten financial stability due to LIBOR′s influence on corporate financing through debt instruments such as loans and bonds.
As a result, there have been calls for initiatives to secure the robustness of interest rate benchmarks to prevent such fraudulent manipulation and to restore the reliability of interest rate benchmarks, including LIBOR. These initiatives are referred to as the "interest rate benchmark reform" (Figure 3).