QuestionWhy is the Bank sometimes referred to as the government's bank?

Under acts and ordinances such as the Bank of Japan Act and the Public Accounting Act, the Bank provides government-related services such as the following: (1) services related to funds of the government (treasury funds), including receipts of taxes and social security premiums, as well as payments of public pensions and public works expenditures; (2) services related to Japanese government securities (JGSs) such as JGS issuance as well as payments of principal and interest on JGSs; and (3) foreign exchange intervention.

These roles that the Bank plays partly explain why it is referred to as the government's bank.

However, Article 5 of the Public Finance Act prohibits the Bank, in principle, from extending credit to the government by providing loans or underwriting government securities.