- Jul. 19, 2019
- Jul. 18, 2019
- Jul. 17, 2019
April 11, 2006
Bank of Japan
At the Monetary Policy Meeting (MPM) held today, the Policy Board of the Bank of Japan decided to take the following measures with a view to facilitating money market operations. These measures are taken to substitute current paper-based bill purchasing operations, which are employed to supply a substantial proportion of funds to the market, with paperless funds-supplying operations against pooled collateral, following up the decision made at the MPM held on September 8, 2005 (see "Amendment to 'Guidelines on Eligible Collateral' " released on the same day).
These Terms and Conditions prescribe the principles for the Bank of Japan's funds-supplying operations against pooled collateral (loans that are made against pooled eligible collateral by way of open market operations with loan rates determined by competitive auctions), with the aim of facilitating money market operations.
The Bank's Head Office (Operations Department) or its branches.
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, excluding the Resolution and Collection Corporation and bridge banks <as defined in Article 2, Paragraph 13 of the Deposit Insurance Law, Law No.34, 1971>), 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).
Loans shall be provided in the form of electronic lending.
Taking account of conditions in financial markets, the Bank shall determine the duration of each loan and the duration shall not exceed one year.
Taking account of conditions in financial markets, the Bank shall determine specifications necessary for lending, including the date of loan disbursement, the amount, and the counterparties for each loan.
These terms and conditions shall become effective on the day designated by the Governor, which shall be no later than July 31, 2006.