(Reference) Reform of the Complementary Lending Facility
(For immediate release)
June 28, 2001
Bank of Japan
- With a view to facilitating monetary operations through enhanced convenience for counterparties, the Bank of Japan decided to reform the Complementary Lending Facility introduced in March 2001 as follows.
- Collateral for the Complementary Lending Facility will be merged with pooled collateral which have been used for bill purchasing operations, daylight overdrafts, and the security of treasury fund operations.
- The form of lending under the reformed Facility will be an electronic loan, a new form of lending extended through BOJ-NET without a bill or a deed accepted.
The Bank will make preparations to implement these measures in the middle of December, 2001. Please see the attachment for the outline of the reformed Complementary Lending Facility.
Prior to effecting the above measures, the Bank will extend the regular deadline for an application for the Facility from 4:00 p.m. to 4:30 p.m. from July 13 on.
Outline of the reformed Complementary Lending Facility
|Present||After the reform||Improvements|
|Form of lending||Loans on bills||Electronic loans
|Collateral||Collateral pledged in advance for BOJ lending (Only bonds and loans on deeds are acceptable)||Pooled collateral commonly used for bill purchasing operations, daylight overdrafts, Complementary Lending Facility, and the security of the treasury fund operations||
|Deadline for applications||4:00p.m.(*1)||4:45 p.m.(*1)||
|Extension of loans||Simultaneous settlement(*2) at 5:00 p.m.||Real-time settlement
(time-zone currently planned is roughly between 4:00 p.m. and 5:00 p.m.)
|Repayment||Simultaneous settlement(*2) at 5:00 p.m. on the next business day||Simultaneous settlement(*2) at 9:00 a.m. on the next business day
- *1On a day when an operating time of BOJ-NET for settlement of funds is extended, the closing time for a request will also be extended by the same amount of time as the extension of operating hours of BOJ-NET.
- *2Simultaneous settlement is a form of net settlement whereby individual participants' payments to and receipts from the Bank are netted out on a bilateral basis between the Bank and that participant, and the resulting net settlement positions of participants are credited and debited on their BOJ accounts simultaneously at designated times.