(Reference)Modification of the Conditions regarding the Purchases of Asset-Backed Securities
January 20, 2004
Bank of Japan
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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.