In these circumstances, various policy measures seem to have prevented serious credit shrinkage: the enhancement of [the ? ]credit guarantee system[s ?] contributed to a recent increase in loans to small and medium-sized firms; and the Bank announced the introduction of new measures, in addition to the continued ample supply of funds, to facilitate firms’ financing activities.
These measures, coupled with the government's measures and financial institutions' proactive efforts, have had positive effects. As a result, financial conditions in Japan have been improving on the whole, with precautionary demand for liquidity subsiding, particularly among large firms.