Comments on the report on compliance to IOSCO Principles for Financial Benchmarks

July 23, 2014

Ippan Shadan Hojin JBA TIBOR Administration

Chairman Akihiro Wani

Financial Stability Board (FSB) publicized a report on compliance of LIBOR, EURIBOR, and TIBOR with IOSCO Principles for Financial Benchmarks(Principles), designating April 11, 2014 as a base date.

In relation to this announcement, JBA TIBOR Administration(JBATA) self-assessed compliance of TIBOR with the Principles, designating July 4, 2014 as a base date and publicized its results on July 7, 2014 , which said that TIBOR was broadly compliant with the Principles, taking into account a variety of initiatives that the JBATA implemented after it was established on April 1, 2014. In addition it said that future tasks include establishment of processes and frameworks for collection of inter-bank transactional data in the unsecured call market and further carrying out data analysis.

There are some difference of assessment between the FSB report and the JBA TIBOR Administration self-assessment (See the attached), which seem to have resulted from the two different base dates. Specifically in all of the six principles the self-assessment gave higher marks than those of the FSB report due to the initiatives the JBATA carried out from April 11, 2014 through July 4, 2014 to comply with the Principles. The JBATA will continue to work to satisfy Principle 6 (Benchmark design), Principle 7 (Data sufficiency), and Principle 9 (Transparency of benchmark determinations) by planning to collect data and further carry out data analysis.

JBATA, in consideration of international discussions at the FSB and other bodies, will seek to maintain and enhance the credibility and transparency of JBA TIBOR and will be committed to strengthen the administration of JBA TIBOR, through establishing and maintaining a framework in accordance with the Principles, so that JBA TIBOR will be recognized internationally as a benchmark conforming to the Principles and will continue to be used widely as a representative benchmark for the Japanese yen interest rate.

【Inquiries】 Ogura(Mr.), Yamada (Mr.) (Tel.03-5252-3722)