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BOJ Kuroda: New support for regional banks won't affect monetary policy

TOKYO, Nov 18 (Reuters) - Bank of Japan Governor Haruhiko Kuroda said on Wednesday that the central bank’s new support measures for regional banks would not have an impact on its current monetary easing policy, dubbed yield curve control (YCC).

Responding to an opposition lawmaker in parliament, Kuroda said the new measures were part of a “prudence policy”, not monetary policy, and therefore not subject to the central bank’s policy review.

The BOJ last week unveiled a scheme under which it will pay 0.1% interest on deposits held by regional lenders that cut costs, boost profits, or consolidate. The scheme was aimed at keeping Japan’s banking system stable, and not tied to monetary policy, it said. (Reporting by Tetsushi Kajimoto Editing by Chang-Ran Kim)

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