Impact of the Fund-Provisioning Measure to Stimulate Bank Lending in Japan

Atsuki Hirata, Yuichiro Ito and Yoshiyasu Kasai
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Atsuki Hirata: Bank of Japan
Yuichiro Ito: Bank of Japan
Yoshiyasu Kasai: Bank of Japan

No 24-E-24, Bank of Japan Working Paper Series from Bank of Japan

Abstract: This paper uses financial data from individual banks to quantitatively analyze how the Bank of Japan's "Fund-Provisioning Measure to Stimulate Bank Lending," decided for introduction in October 2012, affected banks' outstanding loans. We estimated the causal impact of the measure using propensity score matching to address the selection bias stemming from the voluntary basis of participation in this program. The results indicate a statistically significant difference in the outstanding loans between the participating and non-participating banks, suggesting that the Fund-Provisioning Measure to Stimulate Bank Lending helped increase lending.

Keywords: Unconventional monetary policy; Lending facility; Bank lending; Propensity score matching (search for similar items in EconPapers)
JEL-codes: C23 E50 E51 E52 E58 G21 (search for similar items in EconPapers)
Date: 2024-12-27
New Economics Papers: this item is included in nep-cba and nep-mon
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