To tackle the second, “trend-enhancement” challenge, or to strengthen growth potential, the Bank of Japan instituted its Growth Foundation Strengthening Facility (GFSF) in the form of preferential fund-provisioning to support financial institutions’ own initiatives in lending and investing in new growth areas.
It should be made clear here that it is not the Bank of Japan but participating financial institutions that determine which investment projects should be funded using this GFSF. Thus, the GFSF is designed to be a catalyst to induce banks to find new firms or new investment projects in their perceived growth areas.