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