At that time, the BOJ conducted monetary policy by adjusting the official discount rate. However, during the period of rapid economic growth, demand for funds constantly exceeded supply. It was difficult to control banks' lending activities by simply adjusting the official discount rate. For this reason, in 1957, the BOJ introduced an instrument that directly influenced banks' lending behavior.
The theme of this conference is extremely relevant at the current juncture when the groundwork on linking each household to the banking sector in a mission mode under the PMJDY is nearing completion. I congratulate Skoch for choosing this particular theme for its Summit. 2.