During a one-year period up to April this year, those loans increased by 20.1 trillion yen and JGBs account for 80 percent of the collateral.
It is an example of how JGBs play an important role in the Bank’s money market operations.4 Apparently, the Bank is the most proactive among the central banks of major countries in using government securities in the money market operations. This way, the Bank of Japan uses JGBs on a large scale in conducting money market operations.