BoJ eases bank funding trouble

WORRIES over European financial woes pushed the Bank of Japan into lending dollars to banks yesterday.

Responding to increasingly tight lending the Bank supplied $2m (£1.25m) to a one-week operation and $100m in a three-month operation.

Bankers in Japan believe a foreign bank with operations in the country needed the facility.

“This is probably a bank securing funds for the year end,” said Shinsei Bank’s Tomohiko Katsu.

“Europe’s problems are behind a widening in market rates. Some banks will have to rely on central banks.”