An advisory panel to the Bank of Japan on Monday released a set of recommendations that would bar BOJ employees involved in making monetary policy from most types of financial trading, central bank officials said.
The BOJ plans to work out new internal rules as soon as possible, the officials said.
The proposed rules, which would apply to BOJ staff below the executive level, are aimed at improving the transparency of the central bank’s monetary policy and restoring public trust in the bank.
The panel has recommended that BOJ officials who attend Policy Board meetings be barred from transactions involving all financial products except time deposits for seven days before the end of the meeting.
Officials who engage in market operations and foreign currency transactions should also be prohibited from investing in products affected by such operations, the panel said.
In addition, the panel has called on all BOJ officials to refrain from short-term transactions of less than six months in the stocks and bonds of financial institutions that have current account deposits at the central bank, as well as trading on margin, futures trading and options transactions.
In July, the BOJ adopted new internal rules banning executives, including the nine BOJ Policy Board members, from most types of investing in the wake of public criticism over BOJ Gov. Toshihiko Fukui’s investment in a fund set up by indicted financier Yoshiaki Murakami.
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