Announcements

Home > Announcements > Releases 2004 > (Reference) Modification of the Conditions regarding the Purchases of Asset-Backed Securities

(Reference)Modification of the Conditions regarding the Purchases of Asset-Backed Securities

January 20, 2004
Bank of Japan

Note: U-tags is used to draw underlines in this HTML document.

1. The outline of the amendment is as follows (changes underlined).

(1) Ratio of underlying assets related to small and medium-sized enterprises

[Current]

  • The calculation of the ratio should be based on the value of underlying assets.
  • Small and medium-sized enterprises are defined as enterprises with capital of less than 1 billion yen.

[Amendment]

  • The calculation should be based on either the total value or the total number of individual assets in underlying assets.
  • Small and medium-sized enterprises are defined as enterprises either with capital of less than 1 billion yen or with employees of 999 or less.

(2) Creditworthiness of debtors of underlying assets

[Current]

  • Debtors of bank loans in underlying assets shall be those classified as "normal" based on the FSA's examination manual.

[Amendment]

  • This criterion is abolished.

(3) Rating requirement for ABCP

[Current]

  • ABCP shall be rated a-1 by at least two eligible rating agencies.

[Amendment]

  • ABCP shall be rated a-1 by at least one eligible rating agency.

(4) Frequency of selection of counterparties

[Current]

  • Counterparties of this operation shall be selected, in principle, annually.

[Amendment]

  • Besides the annual selection, counterparties of this operation can be added once a month.

2.

This amendment shall become effective on January 20, 2004.