- Jan. 31, 2018
- Jan. 31, 2018
- Jan. 31, 2018
Through the fund-provisioning measure to support strengthening the foundations for economic growth, the Bank has provided long-term funds at a low interest rate to private financial institutions in accordance with their efforts in terms of lending and investment toward strengthening the foundations for economic growth. The Bank offers four lines of credit to support, from the financial side, private financial institutions' efforts of their own accord toward strengthening the foundations for economic growth across a wide range of areas. Through these measures, the Bank continues to make efforts as the central bank toward strengthening the growth potential of Japan's economy.
|Main rules||Special rules for equity investments and asset-based lending||Special rules for small-lot investments and loans||Special rules for the U.S. dollar lending arrangement|
|Time of establishment||June 2010||June 2011||March 2012||April 2012|
|Total amount of loans||10 trillion yen||0.5 trillion yen||0.5 trillion yen||24 billion U.S. dollars|
|Eligible investments and loans||Those with the size of 10 million yen or more||Equity investments and ABL with the size of 1 million yen or more||Those with the size of 1 million yen or more but less than 10 million yen||Those denominated in foreign currencies with the size equivalent to 100 thousand U.S. dollars or more|
|Loan rates||Fixed at 0.0 percent per annum for 4 years Note 1||6-month U.S. dollar LIBOR|
|Duration of loans||4 years (each year, counterparties have an option to make a prepayment) Note 2|
Through the fund-provisioning measure to stimulate bank lending, the Bank provides long-term funds -- up to the amount that is twice as much as the net increase in lending -- at a low interest rate, without any limit, to financial institutions at their request, with a view to promoting their aggressive action and helping increase proactive credit demand of firms and households.
<Outline of the Stimulating Bank Lending Facility (Loans Initially Disbursed on or after April 1, 2014) Note>
Note: As for loans initially disbursed on or before March 31, 2014, the treatment of the total amount of loans provided by the Bank and the amount of loans extended to each counterparty is the same as that laid out in the current outline. However, the terms and conditions applied to these loans differ as follows.
Immediately after the Great East Japan Earthquake in March 2011, the Bank had taken swift measures, including ample liquidity provision and further enhancement of monetary easing, with a focus on three major aspects: maintaining the functioning of financial and settlement systems, ensuring the stability of financial markets, and supporting economic activity. In addition to such measures, the Bank conducts the funds-supplying operation to support financial institutions in disaster areas in order to provide financial support for these institutions' responses to the demand for funds for restoration and rebuilding. The Bank has also broadened the range of eligible collateral for money market operations with a view to ensuring that financial institutions in the disaster areas have sufficient financing capacity. Following the Kumamoto Earthquake in April 2016, the Bank has responded by taking various measures.
For further information on the Bank's response after the Great East Japan Earthquake and the Kumamoto Earthquake, please see Releases Related to the Great East Japan Earthquake and Releases Related to the 2016 Kumamoto Earthquake.