Amendment To Sp'l Dep Facility To Enhance Resilience Of Regional Fin'l Sys

The BoJ note that "in order to ensure the appropriate conduct of the Special Deposit Facility to Enhance the Resilience of the Regional Financial System, the Bank of Japan decided to amend the limit to the eligible amount for special remuneration as follows:

• The limit for eligible financial institutions shall be the smaller of the following. Regarding (1), no change has been made. (1) The amount calculated by multiplying the amount outstanding of their current account balances in excess of required reserves (excess reserve balances) during fiscal 2019 by the recent rate of change in the overall current account balances held at the Bank. (2) The amount calculated by multiplying their excess reserve balance outstanding during fiscal 2019 by the average annual rate of change in the overall current account balances held at the Bank during fiscal 2017-2019 (104.9 percent).
• This amendment shall be effective from the November 2021 reserve maintenance period (RMP). Considering the impact of the amendment in the middle of the fiscal year on regional financial institutions' business, through the March 2022 RMP, the amount up to the eligible amount outstanding for special remuneration during the October 2021 RMP shall be remunerated as transitional arrangements."