ABCPs are commercial paper whose creditworthiness is guaranteed by sales credits that the corporate issuer has with its debtors.
The BOJ currently accepts only a small portion of outstanding ABCPs, and is expected to ease the standard for acceptable ABCPs for CP transactions.
The nine-member panel is expected to agree on steps including the greater use of asset-backed commercial paper (ABCP) issues for supplying more funds to financial institutions.
The measures are expected not only to help financial institutions get funds from the BOJ, but also facilitate fundraising by non-financial firms that float such ABCPs by creating public demand for them.
The Bank of Japan's (BOJ) Policy Board approved Wednesday detailed plans for the central bank to supply funds to financial institutions with greater use of asset-backed commercial paper (ABCP) and asset-backed securities (ABS), the BOJ said.
28, ABCP as eligible collateral and as an eligible asset for CP purchasing operations under repurchase agreements,'' the BOJ said in a statement after the two-day board meeting.
ABCP refers to commercial paper whose creditworthiness is guaranteed by sales credit that the corporate issuer has with its debtors.