Home > Bank of Japan
The Bank of Japan (日本銀行 Nippon Ginko) is the central bank of Japan.1 History
Like most modern Japanese institutions, the Bank of Japan was born after the Meiji Restoration. Prior to the Restoration, Japan's feudal fiefs all issued their own money, hansatsu, in an array of incompatible denominations, but the New Currency Act of Meiji 4 ( 1871) did away with these and established the yen as the new decimal currency. The former han (fiefs) became prefectures and their mints became private chartered banks which, however, initially retained the right to print money. For a time both the central government and these so-called "national" banks issued money; to end this, the Bank of Japan was founded in Meiji 15 ( 1882) and given a monopoly on controlling the money supply.
The Bank of Japan issued its first banknotes on Meiji 18 ( 1885), and despite some small glitches -- for example, it turned out that the konnyaku powder mixed in the paper to prevent counterfeiting made the bills a delicacy for rats -- the run was largely successful. In 1897 Japan joined the gold standard and in 1899 the former "national" banknotes were formally obsoleted.
The Bank of Japan has kept on running ever since, except a brief post-WW2 hiatus when the occupying Allies issued military currency and restructured the Bank into a more independent entity. However, despite a major 1997 rewrite of the Bank of Japan Law (日本銀行法) intended to give it more independence, the Bank of Japan has been criticized for lack of independence. A certain degree of dependence is enshrined in the Law itself, article 4 of which states:
- In recognition of the fact that currency and monetary control is a component of overall economic policy, the Bank of Japan shall always maintain close contact with the government and exchange views sufficiently, so that its currency and monetary control and the basic stance of the government's economic policy shall be mutually harmonious.
2 Missions
According to its charter, the missions of the Bank of Japan are:
- Issuance and Management of BanknoteA banknote (more commonly known as a bill in the United States) is a kind of currency, issued as legal tender. With coins, banknotes make up the cash forms of all modern money. With the exception of non-circulating high-value or precious metal commemoratis
- Implementation of Monetary Policy
- Providing SettlementA reference to colonization, or the resulting communities. See hamlet (place). A legal term, an agreement resolving disputes. See settlement (law). The process of swapping the consideration for the deeds, shares, securities, or financial instrument once t Services and Ensuring the Stability of the Financial System
- TreasuryA treasury is the part of a government which manages all money and revenue. A treasurer is somebody who runs a treasury; although, in some systems (such as the US) the treasurer reports to a secretary of the treasury. Notable Treasuries United States Depa and Government Securities-Related Operations
- International Activities
- Compilation of Data, Economic Analyses and Research Activities
3 Location
The Bank of Japan is headquartered in Nihonbashi, TokyoTokyo (; Tokyo lit. eastern capital) is the capital of Japan as well as the most populous conurbation in Japan, and the world's largest metropolitan area by population with 33,750,000 people living within its urban influence. A little more than 12 million, on the site of a former gold mint (the Kinza) and, not coincidentally, near the famous GinzaFor the Light Rail Stop in Tin Shui Wai, Yuen Long, Hong Kong, please see Ginza (KCRC Tokyo, Japan Ginza is a place in Chuo ward, Tokyo named after the silver coin foundry or Ginza established here in 1612 ( Edo period). Modern Ginza, however, began in 18 district whose name means "silver mint". Despite featuring a neo-Baroque building from 1896, the Tokyo headquarters is a bit off the tourist track, and the better-placed Osaka branch in Nakanoshima is generally regarded as the symbol of the bank.
