The current interest rate benchmark reform is being promoted based on that report. Based on the overarching perspective that benchmark rates should be anchored in actual transactions wherever possible, the FSB report recommended that the reliability and robustness of existing major benchmarks such as TIBOR and EURIBOR, as well as LIBOR, be improved by minimizing the opportunities for market manipulation.
Moreover, to respond to the need for benchmark rates without bank credit risk, the report encouraged the development of alternative, nearly risk-free rates that do not include bank credit risk, thereby enabling market participants to choose LIBOR or other benchmark rates depending on the purpose of that use.