for the first time the possibility of the permanent cessation of libor at the end of 2021. the speech shifted the nature of the interest rate benchmark reform dramatically, from the pursuit of libor enhancement based on the assumption that its publication would be continued to initiatives for the transition to new interest rate benchmarks on the assumption that libor would be permanently ceased. then, as i mentioned in the beginning, the third and final stage of the libor transition started in march 2021 against a background of the formal announcement with regard to the permanent cessation of libor for all currencies in the future. let me turn to the initiatives taken in japan corresponding to each of these three stages ( chart 1 ). in the first stage, where the continuation of libor publication remained intact, various efforts were made to enhance the robustness of the tokyo interbank offered rate ( tibor ), a financial benchmark based on interbank rates in the tokyo market, within the framework of the interest rate benchmark reform in conjunction with yen libor. in july 2017, such efforts came to fruition and important improvements were made, including increased transparency of the calculation and determination processes of submission rates for tibor. moreover, the identification of a japanese yen risk - free rate based on the rates of actual overnight transactions as a new interest rate benchmark was also considered. consequently, in december 2016, the uncollateralized overnight call rate calculated and published by the bank of japan was identified as the yen risk - free rate in japan. thereafter, in the second stage, where the preparations for the possible permanent cessation of libor became a critical issue, the cross - industry committee on japanese yen interest rate benchmarks ( hereafter the " committee " ) was established in august 2018. the committee, of which the bank of japan serves as its secretariat, consists of a wide range of market participants from various businesses, including financial institutions and non - financial corporates. it conducted necessary deliberations from various viewpoints to help benchmark users to appropriately choose and use japanese yen interest rate benchmarks as alternatives to yen libor. in the current third and final stage, which determines the success of the yen libor transition, the focus has shifted to the actual implementation of the yen libor transition activity by each individual market participant, as necessary tools to facilitate each transition activity are already set ready for use in general, reflecting further progress made in deliberations by relevant bodies,

if they outweigh the positive effects of any financial regulations. when designing global financial regulation and supervision, the following four - step cycle must be repeated : first, designing systems from a forward - looking perspective ; second, steady implementation ; third, evaluation of the positive effects and negative side effects, taking into account new technologies and changes in financial environment ; and fourth, addressing any problems when necessary, such as when the negative side effects exceed the positive effects. ten years have passed since the review of global financial regulations and supervision began in earnest after the global financial crisis. in what follows, i will first assess the regulatory development work done during this period, particularly at the financial stability board ( fsb ) and the basel committee. then, among the work currently underway, i would like to highlight the importance of work on the evaluation of financial regulations. finally, i will mention climate - related risk as one of the challenges for future financial stability. 1 / 4 bis central bankers'speeches ii. past achievements : evaluation of discussions over the last 10 years after the global financial crisis, work on reforming financial regulations started with a review of past crises, including the causes of each crisis. it revealed that before each financial crisis, there had always been a build - up of debt at financial institutions and in the non - financial sectors — socalled leverage build - up. financial regulations were therefore strengthened in a forward - looking manner. for example, attention was focused on the credit - to - gdp ratio, which has implications as a leading indicator of potential problems. there has been much valuable progress in international financial regulation and supervision over the past 10 years, including basel iii. for example, an expansion of the basel iii framework was made in each of its three pillars : the first pillar being minimum requirement ; the second pillar, supervisory review process ; and the third pillar, market discipline through disclosure. in terms of content, policy tools such as liquidity regulations were expanded, in addition to the previous riskbased capital regulation. also important was the introduction of a macroprudential perspective at the international level. specifically, first, a countercyclical capital buffer ( ccyb ) was introduced in response to the issue of procyclicality over time ; and second, the structural issue of the “ too - bigto - fail ” problem has been addressed by the introduction of a new framework for identifying global systemically important banks ( g - sibs ) and a total loss - absorbing capacity ( t