- May 22, 2019
- May 22, 2019
- May 17, 2019
(For immediate release)
January 16, 2002
Bank of Japan
At the Monetary Policy Meeting held today, the Policy Board of the Bank of Japan decided to amend"Guidelines on Eligible Collateral" (Policy Board Decision on October 13, 2000) as shown in Attachment with a view to strengthen money market operations. The decision was made in accordance with "Change in the Guideline for Money Market Operations", which was decided at the Monetary Policy Meeting held on December 19, 2001 and immediately announced.
Following today's decision, the Bank will start to accept, on the date no later than February 28, 2002, asset-backed commercial paper (ABCP) as eligible collateral and as eligible asset for commercial paper (CP) purchasing operations under repurchase agreements. Also, the Bank will start to accept from the middle of March 2002 at the latest asset-backed securities backed by mortgage loans and cash flows generated from real estate as eligible collateral.
To utilize market mechanism, the Bank shall make effective use of market information, such as ratings by rating agencies in assessing the eligibility of collateral, market prices in calculating collateral prices, and public information in evaluating the creditworthiness of corporate bonds, bills (including commercial paper other than asset-backed commercial paper), loans on deeds (hereinafter collectively referred to as"corporate debt obligations"),
and asset-backed securities, and asset-backed commercial paper.
1.-14. (No change)
|Collateral Category||Eligibility Standard|
|Government Bonds | Foreign Government Bonds
International Financial Institution Bonds
|Bills (Including Commercial Paper)||Bills other than asset-backed commercial paper||Bills satisfying the following requirements:
|Asset-backed commercial paper||Asset-backed commercial paper (hereinafter referred to as"ABCP") satisfying the following requirements:
|Loans on Deeds||(No change)|
|(Special Provision)||Among the collateral listed above, bonds whose principal balance may decrease due to prepayments before the final maturity date, such as pass-through bonds, should be those issued in the last 5 years, and satisfy the eligibility standards for the corresponding collateral category.|
These amendments shall become effective on a day designated by the Governor, which shall be no later than March 15, 2002.