BoJ pledges up to 1 trn in subordinated loans

The Bank of Japan is to offer its banks subordinated loans worth up to 1 trillion ($10.1 billion) to bolster its banking sector, crippled by the recent slump in equity prices.

The central bank said it realised the action was "an extremely extraordinary measure". Masaaki Shirakawa, the governor of the central bank, told reporters in Tokyo on Tuesday that details of the proposed loans would be announced as soon as possible.

The central bank said the measure "aims at ensuring the smooth function