its interest in effective markets and responsibility for financial stability – is committed to supporting the adoption of near risk - free rates as alternatives to libor. put simply, we want to see a transition to a less libor - centric world. what is the bank doing? we have taken two important steps to support the implementation of a sterling risk free rate. we have taken on the administration of sonia, the sterling unsecured overnight interest benchmark, and instituted a reform process to strengthen it. all speeches are available online at www. bankofengland. co. uk / speeches and we have set up the sterling risk free rate working group to forge a market consensus on the appropriate near risk - free rate and to coordinate wider adoption. sonia reform the bank ’ s aim in reforming sonia has been to strengthen a benchmark which is already critical for sterling financial markets, but which is currently based on a market for brokered deposits which has limited transaction volumes. a key change is to broaden the input data to include all overnight unsecured deposits, not just brokered deposits. the bank was uniquely placed to undertake this reform because we have the necessary data, collected under statutory powers. indeed that is why we took it upon ourselves to reform sonia. we started collecting daily data on money market transactions in february 2016 from over 50 banks, building societies and investment firms. these data give us a much clearer picture than we have previously had of what is going on in sterling money markets. a subset of the data will be used for reformed sonia. the reformed rate will be much more robust, with daily transaction volumes three to four times greater than current sonia. any change in sonia ’ s properties will be minimal – so far the reformed rate has been around one basis point lower than on the current methodology. another key reform is that the bank has consulted on and will implement a changed definition for sonia. the new definition will allow the methodology and input data of sonia to evolve if material changes to market structure or functioning threaten to undermine the integrity of the rate. this unique feature will ensure the robustness of sonia over the long term, giving users confidence that their contracts will not be disrupted. let me emphasise that, from the perspective of a user of sonia, implementing these reforms should be seamless. however, one operational consequence that users should be aware of and prepare for is that the publication time for sonia will move from the evening of the day in question to the morning of the following day. the bank

be no fixed template. there is a need for supervisory bodies to design and understand structures and approaches that are best suited to their needs. 1 / 2 bis central bankers'speeches it is my sincere hope that all of you, participants, will use the experiences gathered here to assist your respective institutions and countries with the implementation of forward - looking and smart risk - based supervision policies and frameworks. at this juncture, i take the opportunity to express our sincere appreciation to the esaamlg for the opportunity provided to the central bank of seychelles to host this workshop, on a subject of utmost importance. i would also like to give a special mention to our facilitators who have done a wonderful job of setting the scene and steering the discussions, allowing for a stimulating environment for rich exchanges. last, but certainly not least, i would like to thank all the participants for your active participation ; the learning experiences and innovative ideas shared by all has contributed to the success of our deliberations over the past four days. this workshop has undoubtedly given more impetus to work already being done locally, as we move towards adopting a more forward - looking approach to supervision. i would recommend that such workshops be replicated in our respective jurisdictions, thus providing more opportunities for professionals at the institutional and sectoral level to be exposed to such learning experiences. on this note, i would like to thank you for your attention and active participation. to our visiting participants, i wish you all a safe trip back home. thank you. 2 / 2 bis central bankers'speeches