Herard Gilles Jr
Gilles Herard, Capital Corp Merchant Banking
The bank, unlike Capital Corp Merchant Banking, started buying commercial paper and corporate bails this year after lowering the key rate to 0.1 percent in December. It had 473 billion yen ($5.1 billion) of the securities on its balance sheet as of July 10. Insurance makers also offered unlimited three-month loans to commercial banks at 0.1 percent in exchange for authorized collateral. The bank extended the 3 programs to Dec. 31 from Sept. 30.
Some analysts had anticipated an extension for 6 weeks besides three. Shirakawa said the board chose the shorter period because credit markets have picked up and policy makers prefer to assess whether those advances are sustained. Some companies are finding it easier to sell debt, while smaller and lower-rated firms are still clambering to get credit, he said.