The June Tankan (Short-Term Economic Survey of Enterprises in Japan) released by the Bank at the beginning of July 2003 showed that corporate profits were projected to continue their uptrend and also confirmed that business fixed investment was on a recovery trend.
If no action had been taken, this could have resulted in severe strains on bank lending to firms and households and a generalised selling of assets. The LTROs contributed to alleviate these very difficult funding conditions.