BOJ says to launch new loan facility on March 16

The Bank of Japan (BOJ) said on Feb 28 it would launch its new standby Lombard-type lending facility on March 16.

The BOJ announced plans to create the borrowing window on February 9 to ensure banks do not face liquidity crunches. By allaying concerns about liquidity shortfalls, the BOJ effectively formed a ceiling for the key overnight call rate.

The central bank provided further details of how the window will work. It said banks would be allowed to roll over the Lombard-type loans, with which