Special Rules regarding Calculation of Interest of Complementary Deposit Facility for Money Reserve Funds, etc.
March 15, 2016
Revision:January 31, 2017
September 19, 2018
March 19, 2021
In light of the functions of the money reserve funds for settlement of securities trading and the developments in the amounts of current account balances and the special reserve account balances at the Bank (hereinafter referred to as the "CABs") held by eligible institutions under the complementary deposit facility, for the time being, the Bank established special rules for calculation of interest of complementary deposit facility, stipulated in Paragraph 5. of the "Principal Terms and Conditions of Complementary Deposit Facility" (Policy Board Decision on January 29, 2016, hereinafter referred to as the "Principal Terms and Conditions").
2. Calculation of Interest
The amounts in (1) and (2) below shall be added to the amount of the sum prescribed in Paragraph 4. (3) of the Principal Terms and Conditions.
- (1) In calculating the interest of an institution which is a trustee of a money reserve fund (in case sub trust is conducted for a money reserve fund, an institution which is a sub trustee of the money reserve fund), the smaller of the following two.
- (a) The amount outstanding of money reserve funds entrusted to the institution during the Benchmark Period.
- (b) The amount outstanding of money reserve funds entrusted to the institution during the Designated Reserve Maintenance Period.
- (2) Of the amount calculated by subtracting the amount prescribed in Paragraph 4. (3) (c) of the Principal Terms and Conditions from the average amount of CAB for the period between the reserve maintenance period starting from February 16, 2016 and that starting from December 16, 2019 (hereinafter referred to as the "Reference Period"), a third of the amount that exceeds the Benchmark Balance by three times (the amount for eligible institutions that meet either (a) or (b) in the following shall be zero: (a) the amount prescribed in Paragraph 4. (2) of the Principal Terms and Conditions during the Reference Period is equal to or greater than the amount prescribed in Paragraph 4. (4); or (b) their CABs for the Benchmark Period did not exist).
Those special rules shall be applied to calculation of interest on and after the reserve maintenance period starting from April 16, 2016.