The Bank of Japan has unveiled a draft plan to provide up to Y1,000bn ($10bn) in subordinated loans to large commercial banks, in the latest radical effort by one of the world’s leading central banks to stem the global economic crisis.
The BoJ move, which it said it was exploring as an “extremely extraordinary measure”, follows the Bank of England’s decision to buy UK government debt and the Swiss National Bank’s announcement of its plan to intervene in currency markets to drive down the Swiss franc.
