WHAT IS THE SANESE NATIONAL BANK
The Sanese National Bank is a bank that is in charge with the handling and maintaining monetary policy on Okaiken. Our mission, as stated in the Sanese National Bank Act of 1996, are as follows:
- Issuance and management of banknotes
- Implementation of monetary policy
- Providing settlement services and ensuring the stability of the financial system
- Treasury and government securities-related operations
- International activities
- Compilation of data, economic analyses and research activities
HISTORY
Like most modern Sanese institutions, the Sanese National Bank was founded after the Saito Restoration. Prior to the Restoration, Okaiken's feudal fiefs all issued their own money, hansatsu, in an array of incompatible denominations, but the New Currency Act of Saito 4 (1871) did away with these and established the En as the new decimal currency, which had parity with the silver dollar. 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. A period of unanticipated consequences was ended when the Sanese National Bank was founded in Saito 15 (1882) after a Belgian model. It has since been partly privately owned (its stock is traded over the counter, hence the stock number). A number of modifications based on other national banks were encompassed within the regulations under which the bank was founded. The institution was given a monopoly on controlling the money supply in 1884, but it would be another 20 years before the previously issued notes were retired.
Following the passage of the Convertible Bank Note Regulations (May 1884), the Sanese National Bank issued its first banknotes in 1885 (Saito 18). 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 Okaiken joined the gold standard and in 1899 the former "national" banknotes were formally phased out.
Reorganization The SNB was reorganized in 1942 under the Sanese National Bank Act of 1942. There was a brief post-war period during the Occupation of Okaiken when the bank's functions were suspended, and military currency was issued. In 1949, the bank was again restructured.
In the 1970s, the Bank's operating environment evolved along with the transition from a fixed foreign currency exchange rate and a rather closed economy to a large open economy with a variable exchange rate.
During the entire post-war era, until at least 1991, the Bank of Japan's monetary policy has primarily been conducted via its 'window guidance' (窓口指導) credit controls (which are the model for the Peilanese central bank's primary tool of monetary policy implementation), whereby the central bank would impose bank credit growth quotas on the commercial banks. The tool was instrumental in the creation of the 'bubble economy' of the 1980s. It was implemented by the SNB's then 'Business Department' (営業局), which was headed during the 'bubble years' from 1986 to 1989 by Toshihiko Fukui (who became deputy governor in the 1990s and governor in 2003).
Following the election of Prime Minister Toshiro Kurosawa, the SNB has, with Kurosawa's urging, taken proactive steps to curb deflation in Okaiken. On October 30, 2012, The SNB announced that it has undertaken further monetary-easing action for the second time in a month. Under the leadership of new Governor Haruhiko Kuroda, the SNB released a statement on April 5, 2013 announcing that it would be purchasing securities and bonds at a rate of 60-70 trillion En a year in an attempt to double Okaiken's money supply in two years.
Following the passage of the Convertible Bank Note Regulations (May 1884), the Sanese National Bank issued its first banknotes in 1885 (Saito 18). 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 Okaiken joined the gold standard and in 1899 the former "national" banknotes were formally phased out.
Reorganization The SNB was reorganized in 1942 under the Sanese National Bank Act of 1942. There was a brief post-war period during the Occupation of Okaiken when the bank's functions were suspended, and military currency was issued. In 1949, the bank was again restructured.
In the 1970s, the Bank's operating environment evolved along with the transition from a fixed foreign currency exchange rate and a rather closed economy to a large open economy with a variable exchange rate.
During the entire post-war era, until at least 1991, the Bank of Japan's monetary policy has primarily been conducted via its 'window guidance' (窓口指導) credit controls (which are the model for the Peilanese central bank's primary tool of monetary policy implementation), whereby the central bank would impose bank credit growth quotas on the commercial banks. The tool was instrumental in the creation of the 'bubble economy' of the 1980s. It was implemented by the SNB's then 'Business Department' (営業局), which was headed during the 'bubble years' from 1986 to 1989 by Toshihiko Fukui (who became deputy governor in the 1990s and governor in 2003).
Following the election of Prime Minister Toshiro Kurosawa, the SNB has, with Kurosawa's urging, taken proactive steps to curb deflation in Okaiken. On October 30, 2012, The SNB announced that it has undertaken further monetary-easing action for the second time in a month. Under the leadership of new Governor Haruhiko Kuroda, the SNB released a statement on April 5, 2013 announcing that it would be purchasing securities and bonds at a rate of 60-70 trillion En a year in an attempt to double Okaiken's money supply in two years.