Special Rules for Member Financial Institutions of Central Organizations of Financial Cooperatives to Use the Fund-Provisioning Measure to Support Strengthening the Foundations for Economic Growth and the Fund-Provisioning Measure to Stimulate Bank Lending
|
March 17, 2015 |
| Revision: |
January 29, 2016 |
The Bank established special rules that supplement the principal terms and conditions and their special rules (hereinafter referred to as the "principal terms and conditions, etc.") regarding the Fund-Provisioning Measure to Support Strengthening the Foundations for Economic Growth or the Fund-Provisioning Measure to Stimulate Bank Lending (hereinafter referred to as "the programs") set forth in the "Principal Terms and Conditions for the Loan Support Program" (Policy Board Decision on December 20, 2012). The special rules shall be applied when member financial institutions of central organizations of financial cooperatives* without a current account at the Bank (hereinafter referred to as "member financial institutions") use the programs through their central organizations who are eligible counterparties of the programs.
| * | The Shinkin Central Bank, the Shinkumi Federation Bank, the Rokinren Bank, and the Norinchukin Bank. |
| 1. | Special rules for the Fund-Provisioning Measure to Support Strengthening the Foundations for Economic Growth shall be as follows. |
|
| (1) | The Bank shall provide loans to central organizations of financial cooperatives based on lending or investment carried out by member financial institutions under those institutions' plans to support strengthening the foundation for economic growth formulated as follows. |
|
| (a) | Central organizations of financial cooperatives shall formulate a policy on plans for each financial cooperative group to lend or invest with an aim to support strengthening the foundation for economic growth and a management policy on the programs for themselves and member financial institutions (hereinafter referred to as the "management policy"), which shall be admitted by the Bank. |
| (b) | Member financial institutions shall formulate plans for lending or investing with an aim to support strengthening the foundation for economic growth in compliance with the management policy described in (a). |
|
| (2) | The maximum amount of loan at each loan disbursement and that of loans to each central organization of financial cooperatives (hereinafter referred to as the "maximum amount of loans, etc.") shall be set as the sum of the maximum amount of loans, etc. for its own use and the maximum amount of loans, etc. calculated for each member financial institution following the principal terms and conditions, etc. |
|
| 2. | Special rules for the Fund-Provisioning Measure to Stimulate Bank Lending shall be as follows. |
|
| (1) | The Bank shall provide loans to central organizations of financial cooperatives based on lending of member financial institutions. |
| (2) | The maximum amount of loans at each loan disbursement to each central organization of financial cooperatives shall be set as the sum of the maximum amount of loans for its own use and the maximum amount calculated for each member financial institution following the principal terms and conditions, etc. |
|
| 3. | Central organizations of financial cooperatives shall distribute all funds provided by the Bank under the programs to member financial institutions based on their lending or investment. Duration, interest rate, and other conditions of the loans to member financial institutions shall be equivalent to those of the loans disbursed by the Bank to central organizations of financial cooperatives. |
| 4. | Central organizations of financial cooperatives, upon requests by their member financial institutions to use the programs, shall ensure adequate credit risk management to their member financial institutions, and shall implement necessary measures to properly carry out their operations under these special rules in compliance with the aim of the programs. |
| 5. | The Bank can implement necessary measures such as suspension of loan disbursements under these special rules to specific member financial institutions and central organizations of financial cooperatives in case they are inconsistent with the special rules. |
Supplementary Provision
The special rules shall become effective today and shall be valid through June 30, 2021.
