QuestionWhat are current account deposits at the Bank? Are interest rates applied to the deposits?
The Bank accepts deposits from financial institutions to their current accounts they hold at the Bank. These deposits are referred to as current account deposits at the Bank or BOJ account deposits.
Major Roles of Current Account Deposits at the Bank
Current account deposits at the Bank serve three major roles:
- (1) Payment instrument for transactions among financial institutions, the Bank, and the government;
- (2) Cash reserves for financial institutions to pay individuals and firms; and
- (3) Reserves of financial institutions subject to the reserve requirement system.
Interest Rates on Current Account Deposits at the Bank
For the interest rates applied to current account deposits at the Bank, see What is the Complementary Deposit Facility? How does a negative interest rate applied to current accounts at the Bank affect financial markets?
For the outstanding balance of current accounts at the Bank, see Sources of Changes in Current Account Balances at the Bank of Japan and Market Operations and BOJ Current Account Balances by Sector.