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QuestionWhat are the Fund-Provisioning Measure to Support Strengthening the Foundations for Economic Growth and the Fund-Provisioning Measure to Stimulate Bank Lending?

Answer

The Bank introduced, as temporary measures, fund-provisioning frameworks to support, from the financial side, financial institutions' efforts toward strengthening the foundations for economic growth and to stimulate bank lending.

Fund-Provisioning Measure to Support Strengthening the Foundations for Economic Growth (introduced in June 2010)

With a view to playing the role of a catalyst in promoting financial institutions' efforts toward strengthening the foundations for economic growth, the Bank provided long-term funds with low interest rates to financial institutions providing loans to or investing in areas that contributed to the growth of Japan's economy.

Loan disbursement under this measure was made through June 2022.

Fund-Provisioning Measure to Stimulate Bank Lending (introduced in December 2012)

With a view to promoting financial institutions' aggressive action and helping increase proactive credit demand of firms and households, the Bank provides funds -- up to an amount equivalent to the net increase in lending -- to financial institutions at their request.

The total amount of loans provided by the Bank under this measure is unlimited. Therefore, the size of this measure is determined by the efforts of financial institutions to increase lending.

Related Page

Details of the Fund-Provisioning Measure to Support Strengthening the Foundations for Economic Growth and the Fund-Provisioning Measure to Stimulate Bank Lending are available at Loan Support Program.