¥260 billion in total! BOJ's “handouts” to regional and shinkin banks quietly end, despite originally being government revenue... Were amakudari appointments a factor?

A total of ¥260 billion had been distributed to regional financial institutions, including regional banks and shinkin banks, as part of the BOJ's efforts to strengthen regional finance, but the scheme is said to have quietly ended. One issue is that the decision was made at a regular meeting of the Policy Board rather than at a Monetary Policy Meeting, and it has been pointed out that the minutes are disclosed in a different format. At Monetary Policy Meetings, the names of speakers and detailed records of the discussion are disclosed, whereas regular meetings use a different disclosure mechanism. The BOJ itself is also said not to have conducted an effectiveness review, prompting criticism that the capabilities of regional finance have not been adequately assessed.

As a 3rd issue, there is no rational explanation for why only regional banks and shinkin banks were eligible, and some argue that the possibility of extending the scheme to other financial institutions, such as city banks, securities companies, and insurance companies, should have been discussed. In addition, the fact that many former BOJ officials hold senior positions at regional banks, shinkin banks, and related organisations has become part of the debate over amakudari appointments. In the past, Diet testimony suggested that many former BOJ officials held director positions at regional banks and shinkin banks, and it continues to be pointed out that amakudari has not been completely eliminated.