TOKYO (Reuters) – The Bank of Japan’s loan scheme targeting growth industries drew solid demand on Tuesday, pushing its cumulative lending to just 60 billion yen ($740 million) from a 3 trillion yen cap and paving the way for debate within the board about expanding it.
The central bank will consider topping up the program as early as its next rate review in June, so that it can put it to use later this year to support Japan’s reconstruction from the devastating March 11 earthquake.
But some analysts said the BOJ should focus on directly supporting the quake-hit economy rather than worrying about nurturing growth industries.
“This scheme is basically a subsidy to commercial banks and isn’t helping to boost bank lending much,” said Takeshi Minami, chief economist at Norinchukin Research Institute.
“The BOJ doesn’t really have the power to decide which industry has growth potential. I think it should stick to basics, which
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