As a consequence of the policy, if Japan’s growth potential recovers, investment opportunities will increase and the natural rate of interest will rise. As an unconventional monetary policy that contributes to strengthening growth potential, the Bank has established a facility called the “Loan Support Program.” The facility is composed of two measures.
One is the fund provision for economic growth, which provides funds for financial institutions’ loans and investment that contribute to Japan’s economic growth. The second is the fund provision to stimulate lending, which provides long-term funds at low interest rates for financial institutions’ incremental lending, in order to support their efforts to increase lending.