Since the base rate is the minimum rate for all loans, banks are not permitted to do any lending below the base rate, save for specified exceptions such as DRI advances, loans to banks’ own employees, loans to banks’ depositors against their own deposits and loans where borrowers enjoy subvention.
Concluding remarks As I have already used up most of my time, I would now like to conclude my remarks. As I mentioned at the start, Japan’s economy is likely to continue to face a severe situation for the time being, especially with respect to exports.