December 20, 2012
Revision :	February 18, 2014
	March 11, 2014
	March 17, 2015
	January 29, 2016
	March 15, 2016

1. Purpose

The terms and conditions prescribe the principles for the Bank of Japan's fund-provisioning measure to stimulate bank lending conducted through the Loan Support Program set forth in the "Principal Terms and Conditions for the Loan Support Program" (Policy Board Decision on December 20, 2012), with a view to promoting private financial institutions' aggressive action and helping increase proactive credit demand of firms and households.

2. Location of Operations

The Bank's Head Office (Operations Department) or its branches.

3. Eligible Counterparties

Eligible counterparties shall, pursuant to the Bank's relevant rules, be selected from financial institutions (as defined in Article 37, Paragraph 1 of the Bank of Japan Act, Act No. 89, 1997, excluding the Resolution and Collection Corporation, bridge banks [as defined in Article 2, Paragraph 13 of the Deposit Insurance Act, Act No. 34, 1971], and specified bridge financial institutions [as defined in Article 126-34, Paragraph 3, Clause 5 of the Deposit Insurance Act]) and the Development Bank of Japan Inc.

4. Form of Loans

Loans shall be provided in the form of electronic lending.

5. Rollover of Loans Initially Disbursed on or before March 31, 2014

(1) Rollover of Loans

If the counterparty requests, the Bank shall allow loans to be rolled over on the maturity date within the maximum amount of loans prescribed in (5).

(2) Duration of Rollover Loans

The duration of rollover loans shall be 1 year, 2 years, or 3 years at the request of each counterparty. However, the overall duration of loans -- adding the duration at the first disbursement and the ones at subsequent rollovers -- shall not exceed 4 years.

(3) Interest Rate on Rollover Loans

The interest rate on rollover loans shall be determined by the methods applied as of the offer date of first disbursement of respective loans. However, the interest rate on such loans shall be 0.1 percent per annum for the time being.

(4) Amount of Each Rollover Loan

The amount of each rollover loan shall be the amount the counterparty wishes to borrow, provided that it shall not exceed the maximum amount of loans prescribed in (5) and the unused value of the total standing pool of eligible collateral pledged to the Bank.

(5) Maximum Amount of Loans

The maximum amount of loans to each counterparty at each loan disbursement shall be the smaller of the following two: (i) the amount calculated by subtracting the amount in (b) from the amount in (a), or (ii) the amount of the existing loans to be rolled over. Housing loans in the trust property of eligible beneficial interest of a trust in housing loans submitted to the Bank as collateral pursuant to the "Collateral Guidelines on Eligible Beneficial Interest of a Trust in Housing Loans" (Policy Board Decision on March 15, 2016) shall be regarded as the counterparty's lending.

(a)

The increase in each counterparty's average amount outstanding of lending, which is calculated by (i) taking the average of the month-end amounts outstanding of lending (excluding lending for the government, municipal governments, financial institutions and the Deposit Insurance Corporation of Japan or any other public institutions specified by the Bank, hereinafter the same) from October to December 2012, (ii) taking the average of the month-end amounts outstanding of lending during a quarter specified by the Bank for each loan disbursement, and (iii) subtracting the amount specified in (i) from the amount in (ii).

(b)

The outstanding amount of loans to each counterparty disbursed pursuant to the principal terms and conditions, excluding those initially disbursed on or after April 1, 2014.

6. Loans Initially Disbursed on or after April 1, 2014

(1) Duration of Loans

The duration of loans to financial institutions shall be set as within four years.

(2) Interest Rate on Loans

The interest rate on loans shall be 0.1 percent per annum.

(3) Date of Each Loan Disbursement

The date of each loan disbursement shall be specified by the Bank. No loan shall be disbursed after June 30, 2017.

(4) Amount of Each Loan

The amount of each loan shall be the amount the counterparty wishes to borrow, provided that it shall not exceed the maximum amount of loans prescribed in (5) and the unused value of the total standing pool of eligible collateral pledged to the Bank.

(5) Maximum Amount of Loans

The maximum amount of loans to each counterparty at each loan disbursement shall be twice as much as the amount calculated by subtracting the amount in (b) from the amount in (a). Housing loans in the trust property of eligible beneficial interest of a trust in housing loans submitted to the Bank as collateral pursuant to the "Collateral Guidelines on Eligible Beneficial Interest of a Trust in Housing Loans" shall be regarded as the counterparty's lending.

(a)	Average of the month-end amounts outstanding of lending of each counterparty during a quarter specified by the Bank for each loan disbursement.
(b)	Maximum of the quarterly averages of the month-end amounts outstanding of lending, from the quarter of October-December of 2012 to the last quarter before the one stipulated in (a).

(6) Prepayment

The counterparty may prepay all or a part of the outstanding amount of loans on an annual basis on a day specified by the Bank.

7. Collection of Interest

The interest on loans shall be calculated for the number of days (i.e., interval) specified by the Bank during the duration of the loans, and the interest shall be collected on the last day of each interval.

8. Collateral

(1)	The Bank shall accept eligible collateral from counterparties in advance.
(2)	The "Guidelines on Eligible Collateral" (Policy Board Decision on October 13, 2000) and the "Collateral Guidelines on Eligible Foreign Bonds" (Policy Board Decision on May 22, 2009) shall apply to the collateral for the loans.

Supplementary Provision

These terms and conditions shall become effective today and shall be valid through June 30, 2021.