This is noteworthy because these are the maturities that are referenced by the bulk of financial contracts.9 In light of the history of LIBOR—and in the context of more than $ billion in overall misconduct fines since the crisis—banks are naturally reluctant to assume the legal risks associated with submitting quotes based on very shallow markets.10 Indeed, that is why some banks have left individual LIBOR panels in recent years.11 Andrew Bailey drove home this point in his July 2017 speech. He explained that the Financial Conduct Authority had to press hard to persuade banks to remain on the panels and voluntarily submit LIBOR quotes through the end of 2021.12 LIBOR’s potential cessation after 2021 poses a clear risk to financial stability, and prudent risk management means that all of us must prepare for a world without LIBOR. The Official Sector Response In recent years, international and domestic authorities alike have actively worked with the private 2/6  BIS central bankers' speeches  sector to address LIBOR’s shortcomings and to find alternative rates. One notable development has been the publication of an international set of principles for financial benchmarks, developed by the International Organization of Securities Commissions (IOSCO) in 2013.13 These principles—which include 19 specific standards across governance, benchmark quality, methodology, and accountability—have emerged as the international standard. IOSCO has rightly focused on tying benchmarks more closely to observable, arms-length transactions. This represents an important step toward eliminating excessive reliance on expert judgment.

Their efforts are in danger of falling short, however, because their domestic savings rates are still too low to finance the volume of investments needed to boost their rate of growth from approximately 5 percent to over 7 percent, which is not an unrealistic objective; it could be attained and sustained for a long time if local savings were supplemented by an appropriate mix of public and private foreign support and if a few key conditions were met, notably: • •  continued modernization of the framework for private investment; and improvement in public governance through the total commitment of new governing teams. Together with the World Bank and bilateral donors, we can make a difference. But a strong political impulsion by the world’s leaders and the example of their countries’ cooperation to development will be of the essence. May their communiqué demonstrate their vision and leadership in this domain also. The stability of the international monetary system has been on the agenda for more than 20 years of annual summits. The Asian crisis has highlighted how disruptive developments in exchange markets can help trigger a crisis. It is in this domain that efforts to strengthen multilateral surveillance over the international monetary system could be particularly fruitful. Moreover, the development of the euro into a key international currency could make a major contribution to stability of the overall architecture, provided that close cooperation is established among the monetary authorities of the tripolar system that might take shape.