Monetary Policy

Home > Monetary Policy > Outline of Monetary Policy > Other Measures

Other Measures

1. Measures to Support Financial Institutions' Efforts toward Strengthening the Foundations for Economic Growth and to Stimulate Bank Lending

(a) Measures to Support Strengthening the Foundations for Economic Growth

Through the fund-provisioning measure to support strengthening the foundations for economic growth, the Bank has provided long-term funds at a low interest rate to private financial institutions in accordance with their efforts in terms of lending and investment toward strengthening the foundations for economic growth.  The Bank offers two lines of credit to support, from the financial side, private financial institutions' efforts of their own accord toward strengthening the foundations for economic growth across a wide range of areas.  Through these measures, the Bank continues to make efforts as the central bank toward strengthening the growth potential of Japan's economy.

Table: Measures to Support Strengthening the Foundations for Economic Growth
  Main rules Special rules for the U.S. dollar lending arrangement
Time of establishment June 2010 April 2012
Total amount of loans Unlimited 24 billion U.S. dollars
Eligible investments and loans Those with the size of 1 million yen or more Those denominated in foreign currencies with the size equivalent to 100 thousand U.S. dollars or more
Loan rates Fixed at 0.0 percent per annum for 4 years 6-month U.S. dollar LIBOR
Duration of loans 4 years (each year, counterparties have an option to make a prepayment) 1 year (the maximum overall duration of loans, including rollovers, is 4 years)

(b) Measures to Stimulate Bank Lending

Through the fund-provisioning measure to stimulate bank lending, the Bank provides long-term funds -- up to the amount that is twice as much as the net increase in lending -- at a low interest rate, without any limit, to financial institutions at their request, with a view to promoting their aggressive action and helping increase proactive credit demand of firms and households.

<Outline of the Stimulating Bank Lending Facility>

  • The total amount of loans provided by the Bank and the amount of loans extended to each counterparty under this facility are unlimited.
  • Loans are disbursed on a quarterly basis based on the amount outstanding of lending in each quarter over the period of January-March 2014 to January-March 2020. The maximum amount of loans to each counterparty is the amount that is twice as much as the net increase in lending.
  • The duration of loans is 4 years. Each year, counterparties have an option to make a prepayment.
  • The interest rate on loans is fixed at 0.0 percent per annum for 4 years.

Further Information on the Scheme and Latest Loan Disbursement

2. Measures to Support Financial Institutions in Disaster Areas

Immediately after the Great East Japan Earthquake in March 2011, the Bank took swift measures, including ample liquidity provision and further enhancement of monetary easing, with a focus on three major aspects: maintaining the functioning of financial and settlement systems, ensuring the stability of financial markets, and supporting economic activity. In addition to such measures, the Bank has conducted the funds-supplying operation to support financial institutions in disaster areas in order to provide financial support for these institutions' responses to the demand for funds for restoration and rebuilding. Since the Kumamoto Earthquake in April 2016, the Bank has taken various measures.
(Temporary rules that had broadened the range of eligible collateral for money market operations in disaster areas were abolished, since they are included in the "Temporary Rules regarding the Eligibility Standards for Debt of Companies and Municipal Governments," which was established on June 20, 2019.)

Further Information on the Scheme

For further information on the Bank's response after the Great East Japan Earthquake and the Kumamoto Earthquake, please see Releases Related to the Great East Japan Earthquake and Releases Related to the 2016 Kumamoto Earthquake.