Skip to main content

Outline of Transactions for Funds-Supplying Operations against Pooled Collateral at All Offices and Funds-Supplying Operations against Pooled Collateral at the Head Office

日本語

As of September 25, 2026
Financial Markets Department
Bank of Japan

I. Introduction

This document is an outline of funds-supplying operations against pooled collateral at all offices and funds-supplying operations against pooled collateral at the Head Office. The Bank of Japan conducts these operations based on the "Principal Terms and Conditions for Funds-Supplying Operations against Pooled Collateral." Please note that the following information may change in the future.

II. Principles

A. Location of operations

The Bank's Head Office (Operations Department) or its branches for funds-supplying operations against pooled collateral at all offices.

The Bank's Head Office (Operations Department) for funds-supplying operations against pooled collateral at the Head Office.

B. Collateral

Collateral accepted under the basic rules concerning collateral as agreed between the Bank and its counterparties.

C. Form of loans

Loans shall be provided in the form of electronic lending.

D. Loan rates

Interest rates on loans shall be determined by one of the following methods.

a. Multiple-rate competitive auction method

Interest rates on loans shall be determined by multiple-rate competitive auctions under the conventional method.

b. Methods other than auctions

  1. (1) Fixed-rate method
    Interest rates on loans shall be determined for each loan based on the guideline for market operations (including the guideline for outright purchases of Japanese government bonds), taking into account market prices of Japanese government bonds for each maturity.
  2. (2) Floating-rate method
    Interest rates on loans shall be the average of the interest rates stipulated in paragraph 4. of the "Principal Terms and Conditions of Complementary Deposit Facility" during the period in which the loans are extended.

III. Auction

A. Notification of auction guidelines (offer)

When conducting funds-supplying operations against pooled collateral at all offices and funds-supplying operations against pooled collateral at the Head Office, the Bank selects auction participants from eligible counterparties and notifies them of the following matters through the Bank of Japan Financial Network System (BOJ-NET).

  1. (a) Method for determining loan rates (multiple-rate competitive auction method, fixed-rate method, or floating-rate method)
  2. (b) Total amount of offer
  3. (c) Loan disbursement date
  4. (d) Maturity date
  5. (e) Bid-submission cut-off date and time
  6. (f) Loan rate (only for the fixed-rate method) or initial loan rate (only for the floating-rate method)
  7. (g) Interest calculation periods
  8. (h) Other matters deemed necessary by the Bank

B. Submission of bids

By the bid-submission cut-off date and time notified in subsection A, auction participants, through the BOJ-NET, notify the Bank (a) for the multiple-rate competitive auction method, their desired loan rates, desired amount of loans per desired loan rates, and the total amount; and (b) for the fixed-rate method or the floating-rate method, their desired amount of loans.

C. Acceptance of bids (notification of respective results to auction participants)

The Bank, after receiving bids as described in section B, accepts bids by (a) for the multiple-rate competitive auction method, starting with the highest desired loan rate and continuing down until the total amount of bids accepted reaches the amount offered; and (b) for the fixed-rate method or the floating-rate method, the desired amount of loans. However, the Bank reserves the right to reject all or some of bids which a counterparty submits when deemed appropriate.

For the fixed-rate method or the floating-rate method, if the total desired amount of loans by auction participants is greater than the total amount of offer, loans will be allocated on a pro rata basis.

When accepting bids, the Bank, through the BOJ-NET, notifies (a) for the multiple-rate competitive auction method, the amount of loans and loan rates used for calculating interest; and (b) for the fixed-rate method or the floating-rate method, the amount of loans to auction participants as described in subsection B. Here and hereinafter, those who receive such notifications will be referred to as borrowers.

IV. Disbursement of loans

A. Disbursement of loans

1. Submission of collateral

Borrowers submit collateral valued higher than the interest, accrued during the interest calculation period in which the loan disbursement date is included, added to the amount of loans, by the loan disbursement date notified in section III. A and the time determined by the Bank.

Borrowers maintain the value of the collateral higher than the interest accrued during each interest calculation period, added to the amount of loans, throughout the relevant interest calculation period.

2. Request for disbursement of loans

Borrowers request loan disbursement by the settlement date notified in section III. A and the time determined by the Bank.

3. Disbursement of loans

Based on subsections 1 and 2, the Bank disburses loans when it receives requests from borrowers who have submitted collateral.

The Bank disburses loans to borrowers on the loan disbursement date notified in section III. A.

B. Payment of Interest

Borrowers shall pay interest to the Bank, calculated based on the rate determined by the method described in section II. D for the number of days from the day following the first day to the last day of each interest calculation period, by the last day of the relevant interest calculation period and the time determined by the Bank.

C. Repayment of loans

In addition to loan amounts, borrowers shall repay interest to the Bank, accrued during the interest calculation period in which the maturity date is included, by the maturity date notified in section III. A and the time determined by the Bank.

Borrowers shall repay loans to the Bank on the maturity date notified in section III. A.

V. Operation Timetable

Please refer to the "Operation Timetable" for the timetable of operations described in sections III and IV.