In the meantime, it will be crucial in ensuring global financial stability that everyone participate in the International Swaps and Derivatives Association’s (ISDA) consultations on better fallback language for LIBOR derivatives and then sign the ISDA protocol so that these fallbacks apply to the legacy book of derivatives.
However, the stance of investors toward firms with high credit risks remains severe and the lending attitudes of private banks remain cautious. Hence, the developments in the behavior of financial institutions and corporate financing continue to require close monitoring. 2  BIS Review 46/2002