Outline of Audits on Establishment and Implementation of JBATA's Framework

Article 23 of the JBA TIBOR Operational Rules ("Rules") requires that, on an annual basis, in principle, JBA TIBOR Administration ("JBATA") shall be subject to internal and external audits on "the execution of JBA TIBOR calculation and publication operations, establishment and implementation of processes/procedures and frameworks required under the Rules and the review of the JBA TIBOR administration framework (including reviewing the definitions and calculation methods)".

Internal audit by the Internal Audit Office and the assurance engagement[1]for the Directors' Report on the JBA TIBOR operational framework in compliance with "Principles for Financial Benchmarks - Final Report -" published by the International Organization of Securities Commissions in July 2013 ("IOSCO Principles") as external audit by Ernst & Young ShinNihon LLC were recently performed. We hereby report the overview of internal and external audits.

1. FY 2023 Internal Audit
(1) Auditors: JBA TIBOR Internal Audit Office
(2) Effective date: October 2, 2023
(3) Audit subjects: Governance framework, Benchmark design, Establishment of benchmark calculation methodology, Framework for accountability
(4) Audit result: There were no findings as the audit result.

2. FY 2023 External Audit
(1) Practitioner: Ernst & Young ShinNihon LLC
(2) Effective date: March 31, 2024
(3) Audit scope: Directors' Report on IOSCO Principles Compliance Framework[2]
(4) Applicable standard: Practical Guideline on Assurance Engagements 3000 "Practical Guideline on Assurance Engagements Other than Audits or Reviews" issued by the Japanese Institute of Certified Public Accountants
(5) Audit result: The Directors' Report's opinion is, in all material respects, fairly presented.

For the details of "2. FY 2023 External Audit," please refer to the PDF file "Result of External Audit on JBATA's Framework in Compliance with IOSCO Principles (FY2023)" listed in "Result of External Audit on JBATA's Framework in Compliance with IOSCO Principles."

JBATA will seek to maintain and enhance the transparency, robustness and reliability of JBA TIBOR, and will implement measures so that JBA TIBOR will continue to be internationally recognized as the benchmark that is compliant with the IOSCO Principles and to be widely used as one of the major JPY interest rate benchmarks.