Bank of Japan Implements Common Collateral Fund Supply Operation to Boost Financial Market Stability

In a move to enhance financial market stability and address liquidity needs, the Bank of Japan has announced the initiation of a Common Collateral Fund Supply Operation. This operation, scheduled to commence on October 6, 2023, will provide a lending period of 5 years until October 10, 2028.

The primary objectives of this operation are to:

  1. Promote Liquidity: By offering a common collateral fund, the Bank of Japan aims to bolster liquidity in the financial system, ensuring that banks have access to necessary funds.
  2. Support Financial Institutions: The operation encourages financial institutions to participate, enabling them to obtain funds for an extended period at a rate to be determined.
  3. Market Regulation: This initiative is part of the broader strategy of the Bank of Japan’s Financial Markets Department to regulate and manage the financial market effectively.

For more details or inquiries, interested parties are encouraged to contact the Bank of Japan Financial Markets Department, Market Operations Division, at 03-3277-1234 or 03-3277-1284.

The Bank of Japan remains committed to implementing measures that contribute to the resilience and smooth functioning of the financial markets.