BOJ Gov. Toshihiko Fukui indicated Monday that he is willing to consider measures such as buying riskier assets from banks to help money flow into the economy, although he added that the central bank must tread lightly.
"At this critical juncture, when we try to shake off deflation, the BOJ needs to a certain degree to take a step forward concerning risk assets to bring forth policy results," he said during a meeting of the House of Councilors Committee on Financial Affairs. "But a central bank is a bank, not a magic bag of tricks. If it takes on risk far beyond its capital base, the end result will be trouble to fiscal coffers."
Profits in excess of reserves and dividends at the BOJ are added to the national treasury -- roughly 1.5 trillion yen in fiscal 2001 -- and make up a sizable contribution at times when tax revenues are falling.