BANK OF JAPAN
Japan’s central bank, the Bank of Japan, was established in 1882 to control the money supply and to be the lender of last resort to the banking system. The government owns 55% of the central bank and the private investors own the rest. It is the sole bank that issues the yen; it is mandated to enforce the government’s economic and financial policies. Until the late 1990s, it came under the indirect control of the ministry of finance, but the government passed laws to make it an autonomous institution. Another enactment was the setting up of the Financial Services Agency, which is responsible for the auditing and supervisory operations earlier performed by the finance ministry.
The central bank, besides handling the responsibility of issuing banknotes and coins also oversees the formulation and implementation of the monetary policy of the country to ensure price stability, undertake necessary actions in order to maintain financial system stability and control the yen carry trade.