Yale School of Management

Posts by Japan

Japan Begins Capital Injections for Financial Institutions in Response to COVID-19

June 19, 2020
On June 13, the Japanese Diet passed an amendment to the Act on Special Measures for Strengthening Financial Functions (ASFF) extending the period of government capital injection to financial institutions from March 31, 2022 to March 31, 2026 and expanding the available public funds for the injection from ¥12 trillion to ¥15 trillion.  Continue reading “Japan Begins Capital Injections for Financial Institutions in Response to COVID-19”

Bank of Japan Increases Liquidity Measures

May 26, 2020
On May 22, the Bank of Japan (BOJ) extended and expanded its “Special Program to Support Financing in Response to the Novel Coronavirus (COVID-19)” to 75 trillion yen (about $700 billion). This includes three programs: (1) $186 billion in Outright Purchases of Commercial Paper and Corporate Bonds, (2) $233 billion for the Special Funds-Supplying Operations, and (3) $279 billion for the recently launched New Fund-Provisioning Measure to support small and medium-sized enterprises. The duration of the measures was extended by six months from September 30, 2020 to March 31, 2021. On March 16, the BoJ had announced emergency measures to facilitate corporate financing that included the first two measures (For details on the third measure, see this YPFS blog post).  Continue reading “Bank of Japan Increases Liquidity Measures”

Japan Introduces Measures to Facilitate Corporate Financing

March 21, 2020
On March 16, the Bank of Japan (BoJ) introduced a package of emergency measures to facilitate corporate financing. Through the new Special Funds-Supplying Operations, the BoJ will lend up to 8 trillion yen ($72 billion) against corporate debt at a 0% interest rate, with maturities up to one year. The terms and conditions can be found here. Continue reading “Japan Introduces Measures to Facilitate Corporate Financing”