The Bank of Japan said Tuesday it will introduce a new funding measure at the end of August to prod banks to boost loans to industries with growth potential, including environment-related firms.
The central bank also decided to keep its key interest rate unchanged at a razor-thin 0.1 percent to help ensure the economic recovery.
Under the new lending program, ¥3 trillion in loans will be provided to private banks that fund projects in industries with growth potential for one year at an interest rate of 0.1 percent a year, the BOJ said after concluding a two-day policy meeting.