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Bank of Japan reviews benchmark ratio

Posted: 10 June 2019  |  Source: Bank of Japan


The Bank of Japan decided to review the Benchmark Ratio (Note 1) used to calculate the Macro Add-on Balance in financial institutions' current account
balances at the Bank, to which a zero interest rate is applied, as follows.

The Benchmark Ratio during the June, July and August 2019 reserve maintenance periods: 36.0% (Note 2)

The Policy-Rate Balance in financial institutions' current account balances at the Bank, to which a negative interest rate is applied, will be about 5 trillion yen on average during the above three reserve maintenance periods, if arbitrage transactions take place in full among financial institutions.

The Benchmark Ratio during the September, October and November 2019 reserve maintenance periods will be announced on September 9, 2019 at 5 p.m.

Note 1: The Benchmark Ratio stipulated in Paragraph 4. (3) (a) of the "Principal Terms and Conditions of Complementary Deposit Facility.

Note 2: The amount stipulated in Paragraph 4. (3) (a) of the "Principal Terms and Conditions of Complementary Deposit Facility" for the above three reserve maintenance periods will be calculated by multiplying the Benchmark Balance by the Benchmark Ratio.