We have learnt above all that sound, well-managed, and healthy banking institutions can form a major bastion against total economic collapse in a situation of large capital outflows. In a number of East Asian countries, the economies collapsed completely because weak banking systems could not survive in the adverse climate of sudden large outflows of capital.
Specifically, the Bank decided to (1) expand the scope of eligible collateral for its provision of credit for such purposes as the Bank’s lending to financial institutions, (2) improve the use of the Fund-Provisioning Measure to Support Strengthening the Foundations for Economic Growth, (3) relax the terms and conditions for the facility of temporarily lending Japanese government securities (JGSs) held by the Bank, and (4) consider introducing an exchange-traded fund (ETF) lending facility, which would make it possible to lend its ETFs to market participants.