Reuters: Japan's Banks And Borrowers Battle Over Lending Benchmark As Clock Ticks On Libor
April 02, 2020
A tug-of-war between Japan’s banks and companies has erupted over replacing the widely used but tarnished Libor benchmark, illustrating the difficulty for lenders, borrowers and regulators in adopting a replacement for the $400 trillion benchmark.
Aude Schonbachler, a partner at Oliver Wyman speaks to Reuters that having an existing - but revised - benchmark alongside the new one gives banks flexibility if there are problems moving to Tonar, but it also means that there are doubts in places about which to use, particularly for the backbook (of existing contracts.
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