Changes in the format of "Sources of Changes in Current Account Balances at the Bank of Japan and Market Operations" and other relevant items

September 21, 2007
Financial Markets Department
Bank of Japan

In line with the dissolution of the Japan Post and the commencement of business by the Japan Post Bank on October 1, 2007, the Bank of Japan will change the format of "Sources of Changes in Current Account Balances at the Bank of Japan and Market Operations" and other relevant items.

The details are described below. For information on changes to other statistics, please see "Statistical Treatment of the Japan Post Bank, etc. "

I. Change in the format of "Sources of Changes in Current Account Balances at the Bank of Japan and Market Operations"

1. Daily statistics

Currently, the figures regarding the deposits of the Japan Post are not included in the following items, which are figures related to the reserve requirements:

--Reserve balances held by institutions subject to reserve requirements
--Held by institutions that have satisfied reserve requirements for the current period
--Excess reserves
--Held by institutions that have NOT satisfied reserve requirements for the current period
--Required reserves for the current maintenance period (cumulative total)
--Required reserves for the current maintenance period (daily average)
--Remaining required reserves (cumulative total)
--Remaining required reserves (daily average)

On the other hand, figures regarding the deposits of the Japan Post are included in "Net change in current account balances," "Current account balances (amount outstanding)," and "Current account balances held by OTHER institutions."

Taking into consideration the fact that the reserve maintenance by the Japan Post Bank will start from the October 2007 maintenance period (from October 16 to November 15), the Bank of Japan will revise the daily statistics in the following manner after October 1.

(1) From October 1 to October 15, 2007

The Bank of Japan will release the daily figures in the current format, and the deposits of the Japan Post Bank will be treated in the same way as the Japan Post.

(2) After October 16, 2007

The figures regarding the deposits of the Japan Post Bank will be included in the following items:

--Net change in current account balances
--Current account balances (amount outstanding)
--Reserve balances held by institutions subject to reserve requirements

The Bank of Japan will change the item "Current account balances held by OTHER institutions," to "Current account balances held by institutions NOT subject to reserve requirements," which will not include figures regarding the deposits of the Japan Post Bank.

However, in order to make it easier for market participants to estimate the actual supply and demand of funds in the market, the Bank of Japan will not include the figures regarding the deposits of the Japan Post Bank in the following items for the time being:

--(reserve balances) Held by institutions that have satisfied reserve requirements for the current period
--Excess reserves
--Required reserves for the current maintenance period (cumulative total)
--Required reserves for the current maintenance period (daily average)
--Remaining required reserves (cumulative total)
--Remaining required reserves (daily average)

The Bank of Japan will discontinue the item of (reserve balances) "Held by institutions that have NOT satisfied reserve requirements for the current period." The Bank of Japan will not revise the past figures (See Attachment 1 (PDF, 38KB) ).

2. Monthly (preliminary and final figures) and Long-term Time-series Data

In line with the revision of daily statistics described in 1.(2) above, the Bank of Japan will include the figures regarding the deposits of the Japan Post Bank in "Net change in reserve balances" and "Reserve balances." The Bank of Japan will discontinue the items "(Reference) Net change in reserve balances and the deposit of the Japan Post" and "(Reference) Reserve balances and the deposit of the Japan Post" after October 2007 (See Attachments 2-3 (PDF, 39KB)).

As for the long-term time series data, the Bank of Japan will discontinue the time series of "Reserve balances and the deposit of the Japan Post," but will continue "Reserve balances," which will include the figures regarding the deposits of the Japan Post Bank.

II. Discontinuation of "Figures on Reserves"

The data in "Figures on Reserves" can be substituted by the data in "BOJ Current Account Balances by Sector," which the Bank of Japan started to release in June 2007. Therefore, the Bank of Japan will discontinue the "Figures on Reserves" after September 2007. The Bank of Japan will not update the preliminary figures included in the August figures released on September 14, 2007.

III. Projection of reserve balances

Currently, the Bank of Japan releases the projection of reserve balances for the day around 8:00 a.m. on every business day. From October 1, 2007, the projection will be made excluding balances that are expected to be held by the Japan Post Bank for the time being.

For further information, contact

Open Market Operations, Financial Markets Department

Hirotaka Hideshima (+81-3-3277-1284)

Tetsuya Sakamoto (+81-3-3277-1234)