However, I believe that the DIC should subsequently secure longer-term funds by swiftly replacing the Bank’s loans with government-secured bond issues or commercial bank loans. The Bank must always be ready to carry out flexible money market operations and serve the function  BIS Review 15/1999  –7–  of the lender of last resort whenever necessary.
And for this, it is essential that the Bank avoid fixing the massive loans to the DIC on its balance sheet. V. Rebuilding Japan’s Economy and Financial System I hope my remarks today have been able to clarify some of the issues concerning the Bank’s balance sheet.