- Jun. 17, 2019
- Jun. 12, 2019
- Jun. 10, 2019
(For immediate release)
April 27, 2000
Bank of Japan
Unless otherwise stipulated, these Terms and Conditions govern the Bank of Japan's purchase of bills issued by financial institutions against collateral such as bills and securities, with the aim of facilitating money market operations.
At the Bank of Japan's head office (Operations Department).
Eligible counterparties shall, pursuant to the Bank's relevant rules, be selected from financial institutions (as defined in Article 37, Paragraph 1 of the Bank of Japan Law, Law No.89, 1997), domestic and foreign securities companies (Article 10, Paragraph 1, Clause 2 of the Bank of Japan Law Enforcement Order <Order No.385 of 1997> and Article 10, Paragraph 1, Clause 4 of the same Order, respectively), securities finance companies (Article 10, Paragraph 1, Clause 3 of the Order), and tanshi companies (Article 10, Paragraph 1, Clause 5 of the Order).
The Bank shall purchase bills issued by financial institutions whose drawers, drawees, and payees are the financial institutions themselves.Drawees must have completed acceptance of the bills, and the maturity date of eligible bills must be within three months starting from the next date of purchase.
Bills shall be purchased through a discount method.The rate of discount is determined by the conventional method in competitive auction.
Taking into account the situation in financial markets, the Bank shall determine necessary details, including purchase dates, amount of bills to be purchased, and counterparties every time it conducts the operations.
The value of collateral prescribed under paragraph 7 above shall be calculated as follows:
|Type of Securities||Collateral Value
(Proportion of face value)
(a) Interest-bearing Japanese government bonds
(maturity within 10 years)
(b) Interest-bearing Japanese government bonds
(maturity over 10 years and within 30 years)
|(c) Discount Japanese government bonds||Within 100/140|
|(d) Treasury bills and financing bills||Within 100/110|
|(e) Japanese government-guaranteed bonds||Within 100/130|
|(f) Interest-bearing bank debentures||Within 100/130|
These Terms and Conditions shall become effective on April 27, 2000.