The JBA TIBOR

The Japanese Bankers Association (JBA) has been publishing daily "Japanese Yen TIBOR" rates since November 1995 and "Euroyen TIBOR" rates since March 1998. The "Japanese Yen TIBOR" rates reflect prevailing rates on the unsecured call market; the "Euroyen TIBOR" rates, the Japan offshore market. Publication of these rates contributes to the development and vitalization of Japan's short-term financial markets.

The JBA TIBOR is calculated by JBA as a prevailing market rate based on quotes for 13 different maturities (1 week, 1-12 months) provided by reference banks as of 11:00 a.m. each business day.

JBA excludes the top two and the bottom two reference rates for each maturity and takes the average of the remaining rates. These averages are published as the TIBOR rates (13 rates each for Japanese yen and Euroyen) through information providers that have contracts with JBA.

Notes:

1. TIBOR stands for“Tokyo Interbank Offered Rate.”

 

2. For details see“JBA TIBOR Publication Rules.”

Unsecured call market

The call market specializes in loans of funds that enable private financial institutions to adjust their short-term funding surpluses and shortfalls. There are two kinds of call transaction: secured and unsecured.

Japan offshore market

The Japan offshore market is a relatively unregulated market that was established in December 1986 in order to further liberalize and internationalize Japanese financial markets. Yen traded on the offshore market is referred to as "Euroyen."