. second, it established a new arrangement for loans of 500 billion yen for small - lot investments and loans ( 1 million yen or more but less than 10 million yen ). third, the bank raised the ceiling for the outstanding balance of loans under the existing arrangement from 3 trillion yen to 3. 5 trillion yen. and fourth, with a view to support financial institutions ’ efforts also from the side of foreign currency funds provisioning, the bank established a new arrangement for providing loans in u. s. dollars to the equivalent of 1 trillion yen, using the u. s. dollar reserves held by the bank. details of the measures will be examined at the next monetary policy meeting to be held on april 9 and 10, 2012. as a result of the measures, the outstanding balance of loans under the arrangements will increase from 3. 5 trillion yen to 5. 5 trillion yen. up to now, i have described the bank ’ s efforts to overcome deflation and discussed things to keep in mind by focusing on the policy decisions made recently. in the actual conduct of monetary policy, based on the outlook for economic activity and prices, it is necessary to respond carefully and decisively by identifying the timing and measures while monitoring a range of conditions and possibilities. the bank will continue to do its utmost as the central bank by pursuing powerful monetary easing to overcome deflation, ensure financial market stability, and provide support to strengthen the foundations for economic growth. concluding remarks : the economy of chiba prefecture in my conclusion, let me touch on the economy of chiba prefecture. the great east japan earthquake in march 2011 caused tremendous damage to the region, including fires, tsunami, and soil liquefaction. one year has passed since the disaster occurred. let me express once again my heartfelt condolences to the victims of the disaster and their families. i also salute the local citizens, firms, and governments for their efforts to achieve restoration and reconstruction. bis central bankers ’ speeches chiba prefecture is bounded by water on three sides, and it is blessed with mild weather and rich natural surroundings. it has a strong agricultural sector with an array of crops that rank first nationwide in terms of output, including peanuts, japanese radishes, green soybeans, and japanese pears, and its agricultural output as a whole ranks third in the nation. chiba prefecture also ranks high in terms of fisheries, with plenty of fishing ports, including the nation ’ s largest, in the city of choshi. the coastal area contains the

macroprudential perspective is indispensable for maintaining financial stability while allowing for capital mobility. the chiang mai initiative – a multilateral currency swap arrangement among asian countries – and cross - border usage of collateral assets, which are eligible instruments for central banks, are notable examples of regional financial coordination to complement macroprudential policy of each country. in addition to global financial coordination, when considering macroprudential policy, global financial regulation is also a key factor. if the financial intermediation function of internationally active banks subject to macroprudential regulation is stable, then financing for development is also expected to be stable in emerging countries. during the asian financial crisis, u. s. and european banks filled lending gaps that japanese banks had left as a result of their withdrawal from the cross - border lending arena, whereas during the recent global financial crisis, these roles were reversed. this kind of substitution dirk schoenmaker ( 2011 ), “ the financial trilemma, ” economic letters, 111, 57 – 59. bis central bankers ’ speeches by internationally active banks may have somewhat mitigated the shortfall in financing for development in emerging countries. however, it ’ s not beyond the realms of possibility that all internationally active banks might cut lending simultaneously in the next crisis. it is desirable that as many internationally active banks as possible constantly maintain their lending without severe disruptions. to this end, global regulations are expected to play a crucial role from a longer - term perspective. finally, in relation to global regulation, let me share my views on an ongoing issue. last december, the bcbs ( the basel committee on banking supervision ) published a consultation document entitled “ revisions to the standardised approach for credit risk ”. in this document, it is proposed that the risk weight for corporate exposures, project finance, and equities be heightened. not a few market participants have sent comment letters to the bcbs, pointing out that a significant increase in risk weight leads to a decrease in banks ’ capital ratios, and the potential impact on financing for development can be huge. while i understand that the revisions proposed by the bcbs were made to reflect the experience of the last global financial crisis, a thorough cost - benefit analysis including an examination of the impact on financing for development is necessary. conclusion as the japanese case shows, the productivity effect of social capital is significant, and stable development finance supported by price stability contributes to an improvement in potential economic growth. in order for emerging countries to