International coordination of unconventional monetary policy The intense debates over cross-border spillovers of unconventional monetary policy during the crisis naturally elicited calls for global coordination of monetary policy to avoid beggarthy-neighbor actions that could undermine growth globally. Recognizing the practical limitations of such proposals, in 2013, the Group of Seven (G-7) instead adopted a more circumscribed but achievable set of commitments.
Against such a backdrop, the Bank has decided to begin exploring specifically the provision of subordinated loans to the banks that are subject to international capital standards. This measure aims at ensuring the smooth functioning of financial intermediation and the stability of Japan’s financial system, by enabling Japan’s banks to maintain sufficient capital bases even in severe financial and economic environments.