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QuestionWho holds accounts at the Bank?


Financial institutions hold current accounts at the Bank. The Bank also provides current account services to governments, central banks, and international organizations. It does not accept deposits from individuals or firms. This is because the main objective of the Bank's acceptance of deposits is to maintain smooth and stable functioning of payment and settlement systems in Japan, as part of its role as the nation's central bank.

Financial Institutions that Conduct Transactions with the Bank

The Bank selects institutions eligible for conducting transactions with it through current accounts they hold at the Bank. Eligible institutions include the following.

  1. Institutions that play a major role in funds settlement: banks, trust banks, shinkin banks, branches of foreign banks, and central institutions for cooperative financial institutions;1 and bankers associations.
  2. Institutions that play a major role in securities settlement: financial instruments firms such as securities companies and foreign securities companies; and securities finance companies.
  3. Institutions that play a major role as an intermediary in money markets, such as tanshi companies (money market brokers).
    1. The Bank conducts transactions with and provides current account services to the central financial institutions of credit cooperatives (shinkumi banks), labor banks, and agricultural cooperatives. These banks and cooperatives do not have direct access to the Bank's services, as they generally serve only their members, and their provision of domestic clearing services -- a major means of funds settlement -- to their members is optional.

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