- Looking to expand loans by ¥1tn
- Decision could be made as early as January
Unnamed sources cited on BBG
The program is designed to allow banks to borrow directly from the BOJ at 0.1% and then lend out to industries that the BOJ see as having growth potential. The program is due to expire in March next year but that may be extended also. The BOJ has lent out ¥4bn of the current ¥5.5tn they put aside.
I don’t know the ins and outs of the details but it’s along similar lines to the BOE Funding for lending scheme and something that the ECB may also be taking a look at as an adjustment to the standard LTRO’s
