Fund-Provisioning Measure to Support Strengthening the Foundations for Economic Growth
Monetary Affairs Department
The Bank of Japan introduced its Fund-Provisioning Measure to Support Strengthening the Foundations for Economic Growth in June 2010, in order to provide support, from the financial side, for private financial institutions' initiatives to strengthen the foundations for economic growth. The Bank announced on August 31, 2010 that it would provide a total of 462.5 billion yen in the first loan disbursement. The Bank introduced the measure because it deemed it important to reverse the trend of decline in Japan's growth rate and put it on a higher medium- to long-term growth path so as to overcome deflation in a sustainable manner. Growth potential will basically be enhanced as a result of active efforts by private firms and financial institutions. In this situation, the Bank anticipates that the measure will act as a catalyst to further stimulate private financial institutions' efforts to strengthen the foundations for economic growth. The Bank will continue to engage itself in broad-ranging discussions on the topic of what measures, including those of the Bank, are necessary for raising Japan's growth potential.
Bank of Japan Review is published by the Bank of Japan to explain recent economic and financial topics for a wide range of readers. This report, 2010-E-5, is a translation of the original Japanese issue, 2010-J-13. If you have comments or questions, please contact the Policy Planning Division at the Monetary Affairs Department (firstname.lastname@example.org).