than a term rate, and doesn't incorporate a significant bank credit risk premium. we think that bbsw can continue to exist even if credit - based benchmarks, such as libor, are discontinued in other jurisdictions. for many financial products, it will still make sense to reference a credit - based benchmark that measures banks'short - term wholesale funding costs. this is particularly the case for products issued by banks, such as frns and corporate loans. the counterparties to these products would still need derivatives that reference bbsw so that they can hedge their interest rate exposures. in the event that libor was to be discontinued, with contracts transitioning to risk - free rates, there may be some corresponding migration away from bbsw towards the cash rate. this will depend on how international markets for products 4 / 5 bis central bankers'speeches such as derivatives and syndicated loans end up adapting in a post - libor world. the infrastructure is already in place for bbsw and the cash rate to coexist as the key interest rate benchmarks for the australian dollar. the ois market is linked to the cash rate and has been operating for almost 20 years. it already has good liquidity at the short end, and the infrastructure is there for longer term ois. a functioning derivatives market for trading the basis between the benchmarks is important for bbsw and the cash rate to smoothly coexist. such a basis swap market is also in place, allowing market participants to exchange the cash flows under these benchmarks. conclusion there are three main points i would like to leave you with concerning interest rate benchmarks. first, the longevity of libor cannot be assumed. you should be considering today what that might mean for any contracts you have that reference libor. please do not hope that if you wait long enough, all the problems will go away. users of libor should pay close attention to the work being undertaken by isda to establish more robust fall - back provisions on contracts. second, in australia, in contrast to other markets, the changes to enhance the longevity of bbsw are well advanced, and it has been possible to anchor the benchmark to a greater number of transactions. third, users should consider whether risk - free benchmarks are more appropriate for financial contracts than credit - based benchmarks. there is still a place for robust credit - based benchmarks in the financial infrastructure, and we expect that bbsw and the cash rate will be able to coexi

##st as the key benchmarks for the australian dollar. 1 i have talked about this issue previously : 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. 2 the instruments traded in the bank bill market are typically negotiable certificates of deposit ( ncds ). 3 see < www. aph. gov. au / parliamentary _ business / bills _ legislation / bills _ search _ results / result? bid = r5962 >. 4 for more details about the methodology for the cash rate, see < www. rba. gov. au / mktoperations / resources / cash - rate - methodology / >. the rba has also conducted a self - assessment against the iosco benchmark principles : < www. rba. gov. au / mkt - operations / resources / cash - ratemethodology / compliance. html >. 5 / 5 bis central bankers'speeches