Japan's major lenders wouldn't want the central bank to pay them to borrow even if policymakers seeking to kill off deflation made such an offer, according to people familiar with the matter.
The idea of setting negative interest rates on loans to lenders surfaced earlier this year after the Bank of Japan adopted a negative-rate strategy in January. According to people familiar with talks at the BOJ in April, discussions on such a plan could happen in conjunction with any decision to make a deeper cut to the current negative rate on reserves.
Hideo Hayakawa, a former BOJ executive director, said last month that giving money to lenders to take out loans would be a better stimulus tool than charging them more on central bank deposits.