Bank of Japan Continues trading even when private financial institutions suffer financial deterioration 12:38 on March 30 to prevent credit crunch
The Bank of Japan issued a statement on the 30th that private financial institutions and other institutions would continue trading even if their financial condition temporarily deteriorated. As the effects of the spread of the new coronavirus spread, the aim is to reduce credit to companies.
The BOJ deposits and lends funds from private financial institutions through accounts called current accounts, and as a condition for conducting such transactions, it is necessary to secure a certain amount of capital based on international rules. I'm asking.
The Bank of Japan issued a statement on Tuesday that "even if the required capital level is not met, we will allow it if it is recognized that it will improve steadily."
If the financial situation worsens due to the worsening economy caused by the spread of the new coronavirus infection and financial institutions recording a lot of bad debts and recording a lot of expenses in preparation for bad debt, the credit crunch will not increase There is a concern.
The BOJ is aiming to support financing support by making a new statement to the financial institutions it deals with so that it will not be reluctant to lend due to financial deterioration.