for diversity initiatives and goals over the next two years. there is more to do to reach our medium - term target, but we are encouraged by the momentum that we ’ ve established, we believe we have the right plan in place, and are heartened to see that our approach chimes with the conclusions in today ’ s report. finally, we are conscious that sustained effort across the financial service sector will be selfreinforcing ; we will all benefit from each other ’ s progress. so without further ado, i will pass over to the economic secretary to the treasury so that she may tell you more about the report and the broader initiative it supports. bis central bankers ’ speeches

global coordination is also vital for interest rate benchmark reform. since interest rate benchmark reform presumes the discontinuation of libor and takes the approach of selecting alternative benchmarks for each currency, specific deliberations will be left to each jurisdiction. as a result, the status of alternative benchmarks might differ from currency to currency, depending on the situation of the financial markets in each jurisdiction. nevertheless, in order to ensure smooth cross - border transactions, it is necessary to coordinate the use of interest rate benchmarks on a global scale to a certain extent. ensuring global coordination among interest rate benchmarks used for cross - currency swap transactions is important. these three things indicate the basic viewpoints of the interest rate benchmark reform. the following points are considered to be important : endeavoring to form a consensus on the selection of interest rate benchmarks as a common infrastructure by taking various needs of parties into account ; involving many relevant parties in the reform given that interest rate benchmarks tend to become deeply rooted in the financial system ; and furthermore, ensuring that the interest rate benchmark reform of each jurisdiction is in line with global trends. iv. japan ′ s initiatives for a smooth transition from libor now, i would like to discuss how japan should proceed with interest rate benchmark reform over the next two years until the end of 2021, when the discontinuation of libor is expected. i will focus on initiatives by individual companies, initiatives by the entire market, and the role of the public sector. initiatives by individual companies the users of interest rate benchmarks such as financial institutions, institutional investors, and non - financial corporates are required to change their libor - based operations and organizational structures to a framework based on alternative benchmarks ( figure 6 ). in this regard, it is important first of all to accurately understand how those parties use libor, because this might be different depending on the industry type and the business model of individual companies. it is also necessary to not only simply examine the exposure of liborbased transactions but also how libor is used in various areas, including accounting and risk management. while the workload associated with the detailed research might be heavy in some cases, it is essential to conduct a thorough examination given the widespread use of libor as a market practice. in addition, it will be required to establish a governance framework, including specific section focusing on the transition to alternative benchmarks, and secure internal resources, including staff and budgets, while