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Amendment to Guidelines on Eligible Collateral and Temporary Rules of Eligibility Standards for Asset-backed Commercial Paper

(Acceptance of Dematerialized Commercial Paper as Eligible Collateral)

February 14, 2003
Bank of Japan

At the Monetary Policy Meeting held today, the Policy Board of the Bank of Japan voted to approve acceptance of dematerialized commercial paper and dematerialized asset-backed commercial paper as eligible collateral (amendment to Guidelines on Eligible Collateral and Temporary Rules of Eligibility Standards for Asset-backed Commercial Paper).

The Law Concerning Book-entry Transfer of Corporate Bonds and Other Securities (hereinafter referred to as"the law") has enabled dematerialization and book-entry transfers of various types of securities including commercial paper. Under the law, the Japan Securities Depository Center Inc., a designated central securities depository, is scheduled to start operating the book-entry system for dematerialized commercial paper and dematerialized asset-backed commercial paper on March 31, 2003.

Regarding the amended Guidelines on Eligible Collateral and Temporary Rules of Eligibility Standards for Asset-backed Commercial Paper, see Attachment 1 and 2 respectively.

Attachment 2

Amendment to Temporary Rules of Eligibility Standards forAsset-backed Commercial Paper

  • The title of these rules shall be amended as"Temporary Rules of Eligibility Standards for Asset-backed Commercial Paper and Dematerialized Asset-backed Commercial Paper".
  • Paragraph1. shall be amended as follows.

1. When assessing the eligibility of asset-backed commercial paper and dematerialized asset-backed commercial paper, the Bank shall not apply paragraph 5. of Guidelines on Eligible Collateral, which stipulates that the debt obligations guaranteed by the Bank's counterparty financial institutions and their affiliates shall be ineligible.

(Supplementary Provision)

These amendments shall become effective on a day when amendments to 'Guidelines on Eligible Collateral' in Attachment 1 above become effective.