The experience with LIBOR should teach us that this has to change and that we cannot risk making this kind of mistake again. Banks should conduct at least as much due diligence on the reference rates that they use as they conduct on the creditworthiness of their borrowers.
The national working groups convened by many of the FSB member authorities have performed that type of diligence with the Secured Overnight Funding Rate, or SOFR, and the risk-free rates identified in other jurisdictions. That effort has been a clear and positive example of public-private sector cooperation.