The Bank of Japan has revised several funding operations to update lending limits, interest rate setting and disaster support. The climate response facility will have an aggregate lending cap of JPY 50 trillion, while each counterparty may borrow up to the amount of its qualifying climate related investment and lending with at least one year remaining, subject to a JPY 10 trillion ceiling. The same counterparty ceiling applies to each participating member financial institution using the facility through a central organization. Climate response loans and disaster support loans will carry the average applicable rate under the Complementary Deposit Facility over the loan term. For Funds-Supplying Operations against Pooled Collateral conducted without auction, fixed rates will be set for each loan with reference to Japanese government bond market rates by maturity and the monetary policy stance, while floating rates will use the same average Complementary Deposit Facility rate. The disaster facility will move from its East Japan earthquake-specific designation and JPY 1 trillion limit to a framework under which the Bank of Japan’s Policy Board determines eligible disasters and lending limits case by case. Those changes take effect on May 31, 2027, while the other amendments take effect immediately and existing loans remain subject to the previous terms.
2026-09-18Bank of Japan
Bank of Japan revises funding operations, caps climate facility at JPY 50 trillion and shifts disaster support to case by case decisions
The Bank of Japan has capped its climate response facility at JPY 50 trillion, with a JPY 10 trillion ceiling for each counterparty, and revised interest rate setting across several funding operations. From May 31, 2027, disaster support will move from the East Japan earthquake-specific framework to case by case Policy Board decisions on eligible disasters and lending limits.