Premium over prime rate depends on borrower's credit. However, many banks tend to take very conservative attitude in providing loans. Role of the Central Bank Bank of Japan monitors financial conditions of banks and securities corporations which hold current accounts with Bank of Japan by various methods including regular examinations. The relevant divisions of the Ministry of Finance, now called as the Financial Supervisory Agency havealso inspected banks and financial institutions regularly. Assessment of risk analysis is made from various viewpoints.
Banks usually lend money to large corporations on no-security basis.
Traditional risk analysis in Japan has put more stress on assessment of land and buildings. In the future more stress on cash-flow of a project may be being sought. Foreign bank lending. There is a bank called as the Main Bank for each corporate borrower. However, its lending is not exclusive.