Bank of Japan
The Bank of Japan (日本銀行, Nippon Ginkō, BOJ) is the central bank of Japan.[3] The bank is often called Nichigin (日銀) for short. It is headquartered in Nihonbashi, Chūō, Tokyo.[4]
Headquarters
27 June/10 October 1882
At least 55% of all capital must be owned by the Government of Japan
The rest are publicly traded over-the-counter in the Tokyo Stock Exchange (TYO: 8301)
Neither the Government nor the private investors have voting power over the Bank's operations
Kazuo Ueda
(9 April 2023 – present)
Japanese yen
JPY (ISO 4217)
+0.10%[2]
The bank is a corporate entity independent of the Japanese government,[5] and while it is not an administrative organisation of the state, its monetary policy falls within the scope of administration. From a macroeconomic perspective, long-term stability of prices is deemed crucial. However, the political sector tends to favour short-term measures. Thus, the bank's autonomy and independence are granted from the standpoint of ensuring long-term public welfare and political neutrality.[6]
Overview[edit]
Objectives[edit]
The comprehensive revision of the Bank of Japan Act in 1998 clearly defined the objectives of the Bank of Japan as 'price stability' and 'financial system stability'. This revision affirmed the Bank's operation independent from the government (primarily the Ministry of Finance), and removed the provisions established in 1942, which had been problematic. The 1942 provision, enacted during the Second World War, stated the objective of the bank was to 'Ensure the Appropriate Exertion of the Nation's Total Economic Power, by Regulating Currency, Adjusting Finance, and Maintaining and Fostering the Credit System in Accordance with the Policies of the State (国家経済総力ノ適切ナル発揮ヲ図ル為国家ノ政策ニ即シ通貨ノ調節、金融ノ調整及信用制度ノ保持育成ニ任ズル。)'.[7]
BoJ's policies are decided at Monetary Policy Meetings (MPM, Kinyu Seisaku Kettei Kaigo, 金融政策決定会合), which are attended by the Policy Board and held every other month.[8]
The Bank of Japan is headquartered in Nihonbashi, Chūō, Tokyo, on the site of a former gold mint (the Kinza) and, not coincidentally, near the famous Ginza district, whose name means "silver mint". The Neo-baroque Bank of Japan building in Tokyo was designed by Tatsuno Kingo in 1896.
The Osaka branch in Nakanoshima is sometimes considered as the structure which effectively symbolizes the bank as an institution.