In particular, bank lending rates and interest rates on corporate bonds continued to decline as a result of the flattening of the yield curve as well as the gradual decrease in credit risk premiums.
Meanwhile, the Bank stressed that a side effect of the QE policy was shrinkage of the interbank markets owing to fewer arbitrage transactions and reduced demand for fund-raising from the market. This led to a decline in credit lines among financial institutions and a cut in resources allocated to the interbank market business within financial institutions.