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Impact of the Fund-Provisioning Measure to Stimulate Bank Lending in Japan

日本語

December 27, 2024
Atsuki Hirata*1
Yuichiro Ito*2
Yoshiyasu Kasai*3

Abstract

This paper uses financial data from individual banks to quantitatively analyze how the Bank of Japan's "Fund-Provisioning Measure to Stimulate Bank Lending," decided for introduction in October 2012, affected banks' outstanding loans. We estimated the causal impact of the measure using propensity score matching to address the selection bias stemming from the voluntary basis of participation in this program. The results indicate a statistically significant difference in the outstanding loans between the participating and non-participating banks, suggesting that the Fund-Provisioning Measure to Stimulate Bank Lending helped increase lending.

JEL classification
E50, E51, E52, E58, G21, C23

Keywords
Unconventional monetary policy, Lending facility, Bank lending, Propensity score matching

The authors thank Sohei Kaihatsu, Naoya Kato, Teppei Nagano, Jouchi Nakajima, Akira Tsuchikawa, and the BOJ staff members for their helpful comments on this paper. The authors are also grateful to Yasuhiro Kubokura and Mai Shukuya for their dedicated support in providing an overview of the Fund-Provisioning Measures to Stimulate Bank Lending as well as similar frameworks implemented in other countries. Any errors remaining in this paper are those of the authors themselves. Additionally, the views expressed herein are those of the authors and do not necessarily reflect the official views of the Bank of Japan.

  1. *1Monetary Affairs Department (currently Research and Statistics Department), Bank of Japan
    E-mail : atsuki.hirata@boj.or.jp
  2. *2Monetary Affairs Department, Bank of Japan
    E-mail : yuuichirou.itou@boj.or.jp
  3. *3Monetary Affairs Department, Bank of Japan
    E-mail : yoshiyasu.kasai@boj.or.jp

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