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Special Rules for Member Financial Institutions of Central Organizations of Financial Cooperatives to Use the Special Funds-Supplying Operations to Facilitate Financing in Response to the Novel Coronavirus (COVID-19) (Invalid)

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April 27, 2020

Revision : May 22, 2020
December 18, 2020
June 18, 2021
December 17, 2021
September 22, 2022

The Bank established special rules that supplement the "Principal Terms and Conditions of the Special Funds-Supplying Operations to Facilitate Financing in Response to the Novel Coronavirus (COVID-19) " (Policy Board Decision on March 16, 2020, hereinafter referred to as the "Principal Terms and Conditions"). The special rules shall be applied when central organizations of financial cooperatives (the Shinkin Central Bank, the Shinkumi Federation Bank, the Rokinren Bank, and the Norinchukin Bank, hereinafter the same) receive loans under the Principal Terms and Conditions in order to disburse their loans to member financial institutions of central organizations of financial cooperatives without a current account at the Bank (hereinafter referred to as "member financial institutions").

  1. Central organizations of financial cooperatives shall request that the member financial institutions wishing to receive loans from these organizations under the special rules report the following (1) and (2) in advance.
    1. (1) The amount outstanding of non-government-supported loans prescribed in paragraph 8. (1) of the Principal Terms and Conditions
    2. (2) The amount outstanding of government-supported loans prescribed in paragraph 8. (1) of the Principal Terms and Conditions
  2. Notwithstanding paragraph 8. of the Principal Terms and Conditions, the maximum amount of newly-disbursed loans for each central organization of financial cooperatives at each loan disbursement shall be as prescribed in (1) and (2) below, in the case that the organization receives funds provided under the special rules. However, the amount shall not exceed the unused value of total standing pool of eligible collateral pledged to the Bank by the central organization at the time of loan disbursement.
    1. (1) For Central Organizations of Financial Cooperatives against Non-Government-Supported Loans Made by Themselves and Their Member Financial Institutions
      The amount shall be calculated by adding the maximum amount prescribed in paragraph 8. (1) of the Principal Terms and Conditions and the sum of the amounts obtained for each member financial institution by subtracting the amount prescribed in (b) from the amount prescribed in (a) below (zero in the case where the subtracted amount is negative).
      1. (a) The amount outstanding of non-government-supported loans reported by the member financial institutions to their central organizations as prescribed in 1.
      2. (b) The sum of the amounts outstanding prescribed in i) and ii) below
        1. i) The amount outstanding of loans disbursed by the central organizations to their member financial institutions concerning 3. (1) (excluding the existing loans that reach maturity on the date when the loans are disbursed by using the funds the Bank newly provides) at the time determined pursuant to the relevant rules of the Bank
        2. ii) The amount outstanding of loans disbursed on or before March 31, 2022 by the central organizations to their member financial institutions under the special rules (excluding the existing loans that reach maturity on the date when the loans are disbursed by using the funds the Bank newly provides) at the time determined pursuant to the relevant rules of the Bank
    2. (2) For Central Organizations of Financial Cooperatives against Government-Supported Loans Made by Themselves and Their Member Financial Institutions
      The amount shall be calculated by adding the maximum amount prescribed in paragraph 8. (2) of the Principal Terms and Conditions and the sum of the amounts obtained for each member financial institution by subtracting the amount prescribed in (b) from the amount prescribed in (a) below (the subtracted amount shall be zero in the case where such amount is negative and shall not exceed the amount prescribed in (c)).
      1. (a) The amount outstanding of government-supported loans reported by the member financial institutions to their central organizations as prescribed in 1.
      2. (b) The amount outstanding of loans disbursed by the central organizations to their member financial institutions concerning 3. (2) (excluding the existing loans that reach maturity on the date when the loans are disbursed by using the funds the Bank newly provides) at the time determined pursuant to the relevant rules of the Bank
      3. (c) The amount calculated by subtracting the amount prescribed in ii) from the amount prescribed in i) below (zero in the case where the subtracted amount is negative)
        1. i) The sum of the amounts outstanding of non-government-supported loans and government-supported loans reported by the member financial institutions to their central organizations as prescribed in 1.
        2. ii) The amount outstanding of loans disbursed by the central organizations to their member financial institutions under the special rules (excluding the existing loans that reach maturity on the date when the loans are disbursed by using the funds the Bank newly provides) at the time determined pursuant to the relevant rules of the Bank
  3. Each central organization of financial cooperatives shall disburse new loans by using funds the Bank provides under the special rules to the member financial institutions that have made a report concerning 1. The amount of newly-disbursed loans shall be in accordance with the requests of these institutions within the amount prescribed in either (1) or (2) below. The duration, the interest rates, and other conditions of the loans disbursed to member financial institutions shall be equivalent to those of the loans provided by the Bank to central organizations of financial cooperatives.
    1. (1) The amount calculated for each member financial institution pursuant to 2. (1)
    2. (2) The amount calculated for each member financial institution pursuant to 2. (2)
  4. Central organizations of financial cooperatives shall ensure adequate credit risk management to the member financial institutions that wish to receive loans under the special rules, and implement necessary measures to conduct lending under these special rules in an appropriate manner.
  5. The Bank can implement necessary measures, such as suspension of loan disbursements under the special rules, to central organizations of financial cooperatives and member financial institutions in case they are inconsistent with the special rules.

Supplementary Provision

The special rules shall become effective on the date determined by the Governor and shall be valid through March 31, 2023.