- Jul. 9, 2020
- Jul. 3, 2020
- Jun. 30, 2020
(For immediate release)
October 13, 1999
Bank of Japan
1. At the Monetary Policy Meeting held today, the Bank of Japan decided a basic policy for money market operations to address Year 2000 problems as follows:
In conducting money market operations, the Bank will respond flexibly such as by providing ample funds over the year-end, paying due consideration to fund demand related to Year 2000 problems.
2. As for Year 2000-related liquidity problems at individual financial institutions, the Bank of Japan intends to respond in a timely and appropriate manner through its lending in case an institution experiences a temporary liquidity shortage, taking into account such factors as the institution's soundness and availability of eligible collateral, although self-efforts on the part of individual institutions are a prerequisite in overcoming possible problems.
In connection with the above, the Bank will accept requests from lending counterparties to submit eligible collateral to the Bank in advance. Taking into account such factors as funding prospects during the days covering the year change period and the amount of collateral necessary for market transactions, lending counterparties are advised to examine the necessity of submitting eligible collateral as well as the amount to submit, and to contact the Bank promptly if necessary.
As the Bank has reiterated, the Japanese financial industry has been making solid progress in its preparations for Year 2000. The Bank believes that the aforementioned measure, in fully utilizing the existing lending facilities, will further enhance preparedness for Year 2000-related liquidity problems at individual financial institutions.