Since the call market is the market in which participants lend and borrow short-term funds, the shrinking of the market implies a possibility that financial institutions may not be able to appropriately perform their banking activity. Therefore, the Bank inevitably has a serious concern about maintaining the functioning of the market.
Lenders in the money market are reluctant to lend when market rates fall to virtually zero. Some regional banks have closed down their Tokyo branches. It has also been pointed out that, with liquidity in the call market declining as a result of less market participation, the market may not function effectively in funds procurement in times of emergency.