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Window guidance

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Between 2007 until 2015, the PBOC introduced green window guidance targets in order to discourage banks to lend to carbon-intensive and polluting activities. In 2021, the PBOC introduced a dedicated green lending facility (CERF) aimed at encouraging banks to issue more green lending at a preferential
138:"While window guidance in Japan similarly played a major role in monetary policy in the past, financial liberalization in the 1980s gradually undermined its effectiveness because liberalization led to the expansion of various financial intermediary channels unrestrained by window guidance." 106:
during the 1960s, the Bank of Japan was given "full control" of the monetary instruments in the economy and was fully responsible for the swings in the business cycle during the 1960s to 1970s period. This, combined with strict
166:(PBOC) adopted window guidance in the early 1990s to ensure the profitability of the commercial banks within the Chinese financial system. Window guidance has recently been used as a tool to slow the expansion of credit in the 174:. In a similar manner to Japan, liberalization of capital controls has led to a decline in the effectiveness of window guidance, resulting in the exponential growth of credit and asset instability. In the recent 207: 46:. Window guidance typically involves the use of benevolent compulsion in order to regulate the supply of credit as a way to achieve policy targets such as sustainability. Window guidance involves the use of 256: 62:, although similar policies have been widely used in the post WWII era in other Asian countries, as well as Western European countries (France, UK, Belgium, Germany) and Canada. 171: 175: 431:"The premise of Japan's 'bubble economy' from the 1960s to the 1980s: Why could not regulatory authorities stop financial institutions from collapsing?" 167: 111:
suppressing the private sector's ability to issue corporate bonds, gave the Bank of Japan a substantial amount of influence in the bond market.
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Window guidance originated as a way for the Japanese government to finance Japanese rebuilding efforts during the early stages of the
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in Japan was completely liberalized, resulting in a dramatic rise in the number of foreign currency bonds issued. During the
208:"Out of the window? Green monetary policy in China: window guidance and the promotion of sustainable lending and investment" 147: 98:
into the Bank of Japan's instruments and allowing for greater flexibility in the regulation of the money supply. During
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Credit where it’s due: A historical, theoretical and empirical review of credit guidance policies in the 20th century.
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or regulate the volume of credit in an industry or financial sector. Window guidance is often associated with the
163: 123: 87: 59: 649: 115: 518: 131: 453: 235:"From Window Guidance to Interbank Rates: Tracing the Transition of Monetary Policy in Japan and China" 178:, the People's Bank of China has attempted to use window guidance in order to support lending amidst a 496: 103: 39: 151: 130:, the Bank of Japan strengthened its window guidance on bank lending in an attempt to tame surging 122:
of 1985, and the creation of a bilateral trade agreement with the United States. By the Mid 1980s,
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UCL Institute for Innovation and Public Purpose Working Paper Series (IIPP WP 2018-11).
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as part of the revision of the Foreign Exchange Control Law in 1980, the signing of the
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took control over the Bank of Japan's administration, embedding Japanese government
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Princes of the Yen: Japan's Central Bankers and the Transformation of the Economy
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Princes of the Yen: Japan's Central Bankers and the Transformation of the Economy
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Policy instrument used to regulate the supply of credit in a targeted industry
497:"INSTRUMENTS OF MONETARY POLICY IN CHINA AND THEIR EFFECTIVENESS: 1994–2006" 519:"An Economic Bubble? Chinese Policy Adapts to Rapidly Changing Conditions" 405:"The Japanese Banking Crisis: Where Did It Come From and How Will It End?" 51: 285:
Bezemer, D., Ryan-Collins, J., van Lerven, F. and Zhang, L. (2018).
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This control, however, was eroded during the liberalization of the
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Grantham Research Institute on climate change and the environment
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The subsequent failure to tame asset inflation, and the ensuing
257:"Window guidance by the Bank of Japan: was lending controlled" 566:"China Urges Banks to Boost Lending After Slow Start to 2022" 454:"Effectiveness of Window Guidance and Financial Environment" 65:
Window guidance is often criticized for causing inefficient
384:"Bubbles in Japan's Stock Market: A Macroeconomic Analysis" 50:
instruments including lending quotas as an informal way to
34:, is an informal policy instrument used to regulate the 539:
Netherl, AuthorHugo Erken RaboResearch; s; Economics.
504:United Nations Conference on Trade and Development 304:"How Do Asian Central Banks Distort And Destroy?" 255:Rhodes, James R.; Yoshino, Naoyuki (1999-04-01). 541:"How serious is China's housing market bubble?" 475:"Japan's Monetary Policy Transition, 1955–2004" 242:National Graduate Institute for Policy Studies 8: 90:. Under the Bank of Japan Law of 1958, the 616:, 10 November. (Accessed: 21 May 2024). 176:2020–2022 Chinese property sector crisis 195: 591: 581: 134:. However, as the Bank of Japan notes, 69:allocation as well as being a form of 448: 446: 444: 172:2015–2016 Chinese stock market bubble 7: 610:PBoC launches targeted green lending 377: 375: 373: 297: 295: 229: 227: 201: 199: 564:News, Bloomberg (21 January 2022). 273:10.1111/j.1465-7287.1999.tb00672.x 14: 545:RaboResearch – Economic Research 356:. M.E. Sharpe. pp. 68, 69. 412:NBER Macroeconomics Annual 1999 1: 482:Research Papers in Economics 435:Sumitomo Historical Archives 261:Contemporary Economic Policy 206:Volz, Ulrich; Dikau, Simon. 148:expansionary monetary policy 331:. M.E. Sharpe. p. 67. 666: 124:foreign direct investment 88:Japanese economic miracle 60:Japanese economic miracle 27: 526:China Leadership Monitor 352:Werner, Richard (2003). 327:Werner, Richard (2003). 168:Chinese property bubble 116:foreign exchange market 58:'s policies during the 244:: 285, 287. June 2020. 164:People's Bank of China 150:instruments including 140: 614:Green Central Banking 391:Brookings Institution 136: 128:Japanese Asset Bubble 608:Caswell, G. (2021) β€˜ 461:Bank of Japan Review 104:income doubling plan 152:quantitative easing 92:Ministry of Finance 594:has generic name ( 645:Credit management 517:Naughton, Barry. 495:Geiger, Micheal. 382:Lincoln, Edward. 32:informal guidance 657: 630:Forward guidance 617: 606: 600: 599: 593: 589: 587: 579: 577: 576: 561: 555: 554: 552: 551: 536: 530: 529: 523: 514: 508: 507: 501: 492: 486: 485: 479: 471: 465: 464: 458: 450: 439: 438: 426: 420: 419: 409: 401: 395: 394: 388: 379: 368: 367: 349: 343: 342: 324: 318: 317: 315: 314: 299: 290: 283: 277: 276: 252: 246: 245: 239: 231: 222: 221: 219: 218: 203: 186:interest rate. 109:capital controls 71:central planning 36:supply of credit 29: 665: 664: 660: 659: 658: 656: 655: 654: 650:Monetary policy 635: 634: 626: 621: 620: 607: 603: 590: 580: 574: 572: 563: 562: 558: 549: 547: 538: 537: 533: 521: 516: 515: 511: 499: 494: 493: 489: 477: 473: 472: 468: 456: 452: 451: 442: 429:Sato, Hideaki. 428: 427: 423: 407: 403: 402: 398: 386: 381: 380: 371: 364: 351: 350: 346: 339: 326: 325: 321: 312: 310: 301: 300: 293: 284: 280: 254: 253: 249: 237: 233: 232: 225: 216: 214: 205: 204: 197: 192: 160: 132:asset inflation 84: 79: 48:monetary policy 20:Window guidance 17: 12: 11: 5: 663: 661: 653: 652: 647: 637: 636: 633: 632: 625: 622: 619: 618: 601: 570:BloombergQuint 556: 531: 509: 487: 466: 440: 421: 396: 369: 362: 344: 337: 319: 291: 278: 267:(2): 166–167. 247: 223: 194: 193: 191: 188: 159: 156: 83: 80: 78: 75: 15: 13: 10: 9: 6: 4: 3: 2: 662: 651: 648: 646: 643: 642: 640: 631: 628: 627: 623: 615: 611: 605: 602: 597: 585: 571: 567: 560: 557: 546: 542: 535: 532: 527: 520: 513: 510: 505: 498: 491: 488: 483: 476: 470: 467: 463:: 1, 2. 2010. 462: 455: 449: 447: 445: 441: 436: 432: 425: 422: 417: 413: 406: 400: 397: 392: 385: 378: 376: 374: 370: 365: 363:9780765610492 359: 355: 348: 345: 340: 338:9780765610492 334: 330: 323: 320: 309: 305: 302:Pham, Peter. 298: 296: 292: 288: 282: 279: 274: 270: 266: 262: 258: 251: 248: 243: 236: 230: 228: 224: 213: 209: 202: 200: 196: 189: 187: 183: 181: 180:credit crunch 177: 173: 169: 165: 157: 155: 153: 149: 145: 139: 135: 133: 129: 125: 121: 117: 112: 110: 105: 101: 97: 93: 89: 81: 76: 74: 72: 68: 63: 61: 57: 56:Bank of Japan 53: 49: 45: 41: 37: 33: 25: 21: 613: 604: 573:. Retrieved 569: 559: 548:. Retrieved 544: 534: 525: 512: 503: 490: 481: 469: 460: 434: 424: 415: 411: 399: 390: 353: 347: 328: 322: 311:. Retrieved 307: 281: 264: 260: 250: 241: 215:. Retrieved 211: 184: 161: 144:Lost Decades 141: 137: 120:Plaza Accord 113: 100:Hayato Ikeda 96:fiscal goals 85: 64: 31: 19: 18: 592:|last= 639:Categories 575:2022-04-18 550:2022-04-18 313:2022-04-18 217:2022-04-18 190:References 52:subsidize 624:See also 584:cite web 506:: 12–14. 170:and the 40:industry 24:Japanese 77:History 67:capital 418:: 135. 393:: 348. 360:  335:  308:Forbes 44:sector 38:in an 522:(PDF) 500:(PDF) 478:(PDF) 457:(PDF) 408:(PDF) 387:(PDF) 238:(PDF) 158:China 82:Japan 30:) or 596:help 437:: 7. 358:ISBN 333:ISBN 162:The 28:ηͺ“ε£ζŒ‡ε°Ž 612:’, 269:doi 102:'s 42:or 641:: 588:: 586:}} 582:{{ 568:. 543:. 524:. 502:. 480:. 459:. 443:^ 433:. 416:14 414:. 410:. 389:. 372:^ 306:. 294:^ 265:17 263:. 259:. 240:. 226:^ 210:. 198:^ 182:. 154:. 73:. 26:: 598:) 578:. 553:. 528:. 484:. 366:. 341:. 316:. 275:. 271:: 220:. 22:(

Index

Japanese
supply of credit
industry
sector
monetary policy
subsidize
Bank of Japan
Japanese economic miracle
capital
central planning
Japanese economic miracle
Ministry of Finance
fiscal goals
Hayato Ikeda
income doubling plan
capital controls
foreign exchange market
Plaza Accord
foreign direct investment
Japanese Asset Bubble
asset inflation
Lost Decades
expansionary monetary policy
quantitative easing
People's Bank of China
Chinese property bubble
2015–2016 Chinese stock market bubble
2020–2022 Chinese property sector crisis
credit crunch

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