Bank of Japan

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Bank of Japan

 

central bank of issue of Japan. Established in 1882. It has a monopoly right to issue bank notes, is the banker of the government, and handles the cash execution of the budget and administration of the state debt. Bank of Japan bank notes have not been convertible into gold since December 1931. According to the law of 1942, a limit is imposed on their issue, and excesses are taxed. The Bank of Japan regulates interest rates on credit. Commercial banks are obligated (since 1957) to keep a certain proportion of their deposits in its accounts. The Bank of Japan performs the functions of a bankers’ bank, providing credit to banks by discounting promissory notes and by issuing loans. The bank invests large sums in bonds of joint-stock companies, thereby providing long-term credit. Jointly with the state monetary fund, the Bank of Japan at the beginning of 1969 owned currency reserves worth 1,046 billion yen ($2.9 billion), of which 12 percent was gold, and the rest, dollar holdings. In 1968 the Bank of Japan had 31 branches in Japan and a representative office in New York. Joint stock at the beginning of 1969 amounted to 100 million yen, of which 55 million yen belonged to the government. The remainder of the government’s deposits in the Bank of Japan totaled 74 billion yen, and investments by the Bank of Japan in state loan bonds totaled 1,434 billion yen. In the total balance at the beginning of 1969 of 4,669 billion yen, the issue of bank notes amounted to 4,042 billion yen; discounting, 340 billion yen; and loans to commercial banks, 1,223 billion yen. Deposits in bonds of joint-stock companies were 938 billion yen. On the bank’s credit side, gold totaled 31 billion yen and foreign exchange, 611 billion yen.

M. IU. BORTNIK

References in periodicals archive ?
This balance sheet has cash of 100 (= BOJ notes circulating in the market), government deposits of 50, reserves of 350 on the liability side, and the total 500 is supporting the government bonds of 500 on the asset side.
A possible vote by Britain to leave the European Union was the biggest near-term concern for BOJ officials, and all the more reason to hold fire until after the June 23 referendum.
DPJ sources said the party is set to give the nod to BOJ governor nominee Haruhiko Kuroda as well as Nakaso for one of the deputy governor posts but may reject Iwata, a strong advocate of bolder monetary easing to achieve the 2 percent inflation target.
The government may ask the BOJ to do more to beat deflation, such as by reverting to quantitative easing or implementing some form of credit easing.
Foreign investors, encouraged by the appointment of a new, more flexible BOJ governor and a very "soft-landing" type of bailout for Resona Bank in May, began to suspect that the BOJ's increasingly large and overt interventions in the currency markets were also not being sterilized (i.
In other words, in the context of our discussion of necessary supply-side reform, it is not only unrealistic to expect the BOJ to provide the solution; it might also be unrealistic to expect the BOJ to stop being part of the problem.
DPJ sources say the party is set to give the nod for the former vice finance minister for international affairs to head the BOJ.
Fukui wants the BOJ to exert a direct impact on the bad loan problem, possibly through its bank examination authority.
The appointments of the BOJ governor and deputy governors must be approved by both chambers of the Diet.
2 executive, said last month the party believed the government should not interfere in monetary policy and would respect BOJ decisions.
As one BOJ official put it in private, "These firms are already dead.
BOJ Governor Haruhiko Kuroda and his board colleagues also decided to extend the average maturity of the Japanese government bonds the BOJ buys to 7-12 years from 7-10 years and to increase its real estate investment trust purchases.