The Bank provides various services relating to the government, such as treasury funds and Japanese government securities (JGS) services.
The Bank provides various services relating to the government, such as treasury funds and Japanese government securities (JGS) services.
As for services relating to treasury funds, the Bank carries out receipt, disbursement, and accounting of treasury funds (the Bank classifies receipts and disbursements of treasury funds by the specific government account as well as by the individual government agency).
As for JGS services, the Bank carries out issuance of, and principal and interest payment on, JGSs as well as operations relating to its role as the book-entry transfer institution in the JGB Book-entry System.
Besides the above operations, the Bank engages in various transactions with the government, such as buying and selling JGSs.
Services Relating to Treasury Funds
The Bank accepts deposits (treasury funds) from the government as government deposits.
The Bank provides the following services: (1) receipt, disbursement, and accounting of treasury funds; (2) management of deposits of the government; and (3) custody of securities acquired by or submitted to the government. Treasury funds consist of revenues from the public, such as national taxes and social security premiums, and government expenditures, for example, payments such as public works expenditures and public pensions. Receipt and disbursement of treasury funds are recorded accurately by the Bank, classified by not only the specific government account but also the individual government agency. These figures are checked each month to ascertain whether they match those calculated by the relevant government agencies. The Bank acts as the custodian of securities acquired by or submitted (as collateral or deposits) to the government. The Bank receives, delivers, and keeps in custody such securities on behalf of the government.
For the convenience of the public and government agencies across the country, the Bank designates with the approval of the Minister of Finance, many branches and offices of financial institutions throughout the country and nationwide post offices of Japan Post as agents and entrusts them with the receipt and disbursement of treasury funds. With this scheme, most receipts and disbursements of treasury funds are conducted by these agents.
The Bank has been making advances toward achieving more streamlined online processing for treasury funds operations for the convenience of the public and to enhance efficiency in the operations of related institutions.
Services Relating to JGSs
The Bank provides the following services relating to JGSs.
The first is JGS issuance, for which the Bank announces public auctions, accepts bids, and collects payments.
The second is registration of JGSs and book-entry transfer of JGSs, for which the Bank acts as the registrar or depository and provides JGS transfer services.
And the third is payments of principal and interest on JGSs: the Bank pays interest on JGSs, redeems JGSs, and collects coupons and physical securities.
As with treasury funds operations, the Bank designates many branches and offices of financial institutions throughout the country and nationwide post offices of Japan Post as agents and entrusts them with some operations relating to JGSs.
Transactions with the Government
Besides the above operations, the Bank engages in various transactions with the government, such as buying and selling JGSs.
In 1999, the Policy Board established principal terms and conditions for the Bank’s transactions with the government. Under the principal terms and conditions, the Bank pursues proper conduct of such transactions with due consideration to the appropriateness of its credit exposure to the government.
. "Bank Of Japan." . . Bank Of Japan. 1.31.08 <http://www.boj.or.jp/en/index.htm>.
