In an extraordinary monetary policy meeting Tuesday, the Bank of Japan said it would help companies get operating funds toward the yearend by accepting lower-rated corporate debt from banks as collateral for loans.
The central bank said corporate bonds and loans rated BBB or higher will be accepted as collateral starting Dec. 9. The BOJ currently accepts debt rated only A or higher.
By making it easier for financial institutions to get money, the BOJ hopes banks will increase lending toward the end of the calendar and fiscal years, when demand for funds is usually high. To that end, the BOJ said it would establish a new lending facility for financial institutions.
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