To be more specific, it has been providing such ample liquidity that the outstanding balance of current accounts at the Bank has substantially exceeded the amount of required reserves, which is about 6 trillion yen at present. This has continued to generate confidence among market participants about raising funds and has resulted in short-term interest rates of almost zero percent.
Making financial institutions feel secure about the availability of funds helps to maintain an accommodative corporate financing environment and also to firmly support private-sector economic activity from the financial side. Even when there were strong concerns about financial system stability, financial markets were stable, the financial environment remained accommodative, and a possible credit crunch was avoided.