With a view to promoting potential growth from the perspective of monetary policy, the Bank introduced a new facility called the Growth-Supporting Funding Facility in 2010 (Chart 21). This facility aims at providing financial institutions with longer-term funds (with a maturity of one year, but this can be rolled over up to three times). The interest rate is low – currently 0.1 percent.
The funds will be provided to financial institutions based on their applications for loans and investment extended by them in growth-oriented sectors. The maximum amount of funds available under this facility is 3.5 trillion yen.