If the Bank of Japan Increases Current Account Deposits, Will Bank Lending Increase? — Thinking About the Circulation of 'Sleeping Money' and the Real Economy —
Published on: Friday 02 October 2026
If the Bank of Japan increases current account deposits, will bank lending increase?When considering monetary policy, it is often explained that, “If the Bank of Japan buys government bonds, banks' current account deposits at the Bank of Japan will increase. Therefore, banks can increase lending
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