Loans to the Deposit Insurance Corporation  Now, I would like to add a word on the Bank of Japan’s lending to the Deposit Insurance Corporation (DIC). The Bank’s lending to the DIC has increased significantly reflecting the massive funding needs of the DIC in proceeding with the resolution of the nonperforming-loan problem of financial institutions.
Moreover, it has become very likely that this loan exposure will be fixed for an extended period of time. The very function of a central bank is to implement monetary policy through the purchase and sale of short-term, liquid financial assets.