From the beginning of my appointment as a member of the Policy Board, I have repeatedly emphasized at the Bank that it should integrate these two operations to avoid unnecessary complexity as well as other problems, which I will now explain.
A Rinban operation aims at purchasing JGBs (on the asset side of the Bank) according to an increase in the banknotes issued (on its liability side). An increase in the amount outstanding of JGB holdings under the Rinban operation was limited relative to that of the Program – despite the large amount outstanding of 65 trillion yen at end-2012.