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.


References in periodicals archive ?
The head of the central bank of Japan said that the nation is gradually escaping a prolonged period of deflation that has impeded economic growth, stifled investment and put downward pressure on wages.
The central bank of Japan has become the nation's biggest creditor, according to latest reports.
The head of the central bank of Japan has asked the prime minister of the nation to intervene in order to abet growth in the nation.
The central bank of Japan has quelled hopes of a stimulus cut.
Analysts are of the belief that the central bank of Japan could have more room to ease rates.
The central bank of Japan has said that the economy can handle a tax increase.
The central bank of Indonesia has announced that it has expanded its currency swap agreement with the central bank of Japan.
The central bank of Japan is expected to wait until at least the second quarter to decide whether to add more stimuli.
The central bank of Japan has maintained its aggressive monetary easing stance.

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