6/85 CERTIFICATES OF DEPOSIT - Deregulation

The Bank of Japan has greatly eased restrictions on holdings of certificates of deposit by city banks, long term credit banks, foreign banks and local banks. It has raised by four times the average monthly holdings that a bank is permitted to hold to 20 billion yen. All restrictions have also been removed on peak holdings. On the other hand, the holdings of subsidiaries of banks, such as factoring subsidiaries, etc will be included in calculating the monthly average. Previously they had not been included.

THE JAPAN LAWLETTER. June 1985. By Roderick Seeman