- Jun. 4, 2020
- May 29, 2020
- May 29, 2020
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 two 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 the U.S. dollar lending arrangement|
|Time of establishment||June 2010||April 2012|
|Total amount of loans||Unlimited||24 billion U.S. dollars|
|Eligible investments and loans||Those with the size of 1 million yen or more||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||6-month U.S. dollar LIBOR|
|Duration of loans||4 years (each year, counterparties have an option to make a prepayment)||1 year (the maximum overall duration of loans, including rollovers, is 4 years)|
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>
Immediately after the Great East Japan Earthquake in March 2011, the Bank swiftly took various measures, including the provision of ample liquidity 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 has conducted 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 reconstruction. Since the Kumamoto Earthquake in April 2016, the Bank has also taken various measures such as conducting the Funds-Supplying Operation to Support Financial Institutions in Disaster Areas of the 2016 Kumamoto Earthquake.
(Temporary rules that had broadened the range of eligible collateral for market operations in disaster areas were abolished, since they are included in the "Temporary Rules regarding the Eligibility Standards for Debt of Companies and Municipal Governments," which was established on June 20, 2019.) The Bank decided to reshape the operations to support financial institutions in disaster areas from July 2020 by integrating the two existing operations into the new one and abolishing the deadline of the operations, with the aim of continuing in a more stable manner to support efforts toward restoration and reconstruction made by financial institutions.
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.