- May 17, 2019
- May 10, 2019
- May 9, 2019
January 16, 2002
Bank of Japan
At the Monetary Policy Meeting held today, The Bank of Japan ("The Bank"), with a view to facilitating money market operations, decided to revise the selection procedure for counterparties in Bill Purchasing Operations ("BPO") as follows.
Presently, counterparties in All offices BPO are selected once a year. The Bank decided to change this, and it will accept applications any time and will add any institution satisfying a set of criteria to the list of eligible counterparties on an ongoing basis. The Bank will release the details of this procedure in early February and begin to receive applications.
As one of the criteria, The Bank is planning to require that applying institutions maintain a certain level of collateral at the Bank. Specifically, it is envisaged that the institutions would maintain more than 1 billion yen (subtracting the amount equal to the security for treasury fund operations) of collateral on average at The Bank in previous month.
As for the selected counterparties, The Bank will review their willingness and eligibility to remain counterparties once a year.
The Bank revised the criteria for selecting counterparties in Head office BPO as follows. The revised criteria will be applicable from the next selection scheduled this spring.