14 March 2008

Bank of Japan action plans for fiscal 2008

The Bank has released its Action Plans for Fiscal 2008 which comprises the set of issues and concrete action plans that the Bank should tackle during the coming fiscal year in order to achieve the goals of its "Medium-Term Strategic Framework for Fiscal 2005-2009" which was released on March 18, 2005.

BoJ notes that the materialization of the U.S. subprime mortgage problem reflect multifaceted changes extending throughout financial markets, which have taken place against the background of progress in globalization, advances in financial engineering techniques, and continuation of the accommodative financial environment.

Taking account of changes in the financial market environment, the Bank should continue to support financial institutions' efforts to put in place more sophisticated risk management and general management systems. In addition to the above, in implementing concrete action plans for fiscal 2008, the Bank should aim at further enhancing the functioning of Japan's financial markets.

To enhance international operations and services in response to globalization, the Bank will strengthen cooperation with other central banks and play a prominent part in ensuring the stability of the international financial system, and in fostering and developing efficient financial markets in Asian economies. Measures foresee:

1. Engaging in discussions held at global forums on the sound development of the global economy and the improvement of the functioning of global financial markets.

2. Continuing to promote efforts to formulate and implement concrete measures to improve and expand the network of swap agreements in the Asian region, so as to foster and develop efficient financial markets in Asian economies and enhance the stability of the currency system in Asia.

3. Strengthening cooperation with central banks and other authorities in Asia and playing a prominent part in the region, especially through initiatives taken by the Bank's Center for Monetary Cooperation in Asia (CeMCoA), by holding seminars, conducting joint research, and building on existing schemes for technical assistance and personnel exchange.

4. Managing the Bank's foreign currency assets in a stable and efficient manner.

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