BIS Review 115/2010  1  than the corresponding-term CP rates. Thus, large non-financial corporations could profit from raising funds by issuing CPs and depositing them in these unregulated large time deposits (BOJ 1989 3). By a similar token, 3–6 month unregulated time deposit rates were substantially higher than short-term prime lending rates (see Chart 1).
Chart 1 Time deposit rates and prime lending rates  Note: “3–6 month time deposit rate (unregulated, new receipts)” is the average interest rate on newly received time deposits with unregulated interest rates of terms between 3 and 6 months. “3 month time deposit rate (regulated, new receipts)” is the interest rate set by the regulation on newly received 3 month time deposits.