issuance, however in reality they can execute the swap at a later date depending on the pricing. https : / / www. rba. gov. au / speeches / 2019 / sp - ag - 2019 - 03 - 19. html 18 / 19 3 / 19 / 2019 bonds and benchmarks | speeches | rba if the market is accounted for by only one industry, this index is 1. if, on the other hand, n industries each have an equal share of the market, the index is 1 / n. for more information on the dataset, see fernandes k and jones d ( 2018 ), ‘ the reserve bank's securitisation dataset ’, rba, december. see : debelle g ( 2018 ), ‘ interest rate benchmark reform ’, keynote at isda forum, hong kong, 15 may ; debelle g ( 2017 ), ‘ interest rate benchmarks ’, speech at finsia signature event : the regulators, sydney, 8 september ; debelle g ( 2016 ), ‘ interest rate benchmarks ’, speech at kanganews debt capital markets summit 2016, sydney 22 february ; debelle g ( 2015 ). ‘ benchmarks ’, speech at bloomberg summit, sydney, 18 november. schooling latter, edwin ( 2019 ), ‘ libor transition and contractual fallbacks ’, speech delivered at the international swaps and derivatives association ( isda ) annual legal forum, 28 january 2019. available at : < https : / / www. fca. org. uk / news / speeches / libor - transition - and - contractual - fallbacks >. sofr is a broad measure of the cost of borrowing us dollars under repurchase agreements collateralised by us treasury securities ; sofr is administered by the new york fed. sonia is a measure of the cost of borrowing british pounds in the wholesale unsecured overnight market ; sonia is administered by the bank of england. the commonwealth bank issued a frn referencing sonia on 3 december 2018 and anz issued a covered bond referencing sonia on 11 january 2019. the instruments traded in the australian bank bill market are bills of exchange and negotiable certificates of deposit ( ncds ). historically, bills of exchange were the main instrument, although in recent years issuance of ncds has dominated the market. for more details, see connolly e and s alim ( 2018 ), ‘ interest rate benchmarks for the australian dollar ’, rba, september.

one hand, they need to find ways to reduce the proportion of legacy assets with low interest rate spreads, thereby freeing liquidity for new activity. in this respect i would like to point out that, when portuguese banks benefit from a more adequate rating ( for example, if acquired by an institution with a high - quality rating ), they will automatically benefit from a re - rating of their mortgage portfolio and realize gains. • on the other hand, they need to execute their rationalisation plans with determination, in order to bring about structural cost reduction. • lastly, they need to actively seek out strategic investors that can bring new capital to the institutions. at european level, the negative interaction between sovereigns and banks has to be credibly and effectively broken, and the normal functioning of the money and debt markets in the euro area must be re - established. the creation of the banking union is key in this process. with the banking union, the european central bank becomes responsible for the prudential supervision of euro area credit institutions, through the so - called single supervisory mechanism. from november 2014, the ecb will be responsible for direct supervision of the credit institutions which are deemed to be “ significant ” and the national supervisory authorities will directly supervise all the other institutions, always following a common framework. over the past few months, detailed preparatory work has been undertaken to put the single supervisory mechanism into operation. banco de portugal has taken an active role in this process. in the context of the preparatory work, the next big challenge is the comprehensive balance sheet assessment of “ significant ” institutions by the ecb and the participating national competent authorities. this exercise, which starts in a few days, will comprise an assessment of key risks, an asset quality review and a stress test. as pointed out, this approach is very similar to the one followed by banco de portugal over the last three years. four portuguese institutions will be included in the comprehensive assessment : banco bpi, banco comercial portugues, caixa geral de depositos and espirito santo financial group. this exercise is very important for ensuring transparency and enhancing investors ’ confidence in the euro area banks and the quality of their balance sheets. from the ssm perspective, the exercise is like “ due diligence ” before the start of the banking union. in my view, to enhance credibility in the system the comprehensive assessment exercise should be based on three main principles : bis central bankers ’ speeches • first, the appropriate course of action should