Note 1-31

(31) For Daiko henjo return of pension funds' assets to the state, measures were taken in May 2003 to change the condition for returning by equity from having more than 90% of the constituents of TOPIX to more than 80%. For smooth disposal of stocks by banks, etc., the government also established the Banks' Shareholdings Purchase Corporation in 2002 and started purchasing stocks up to two trillion yen (the purchase amount was about 343 billion yen as of September 30, 2003). In August 2003, contribution to be paid in selling stocks was abolished to promote the utilization of the Corporation. Furthermore, the Bank of Japan started purchasing stocks held by banks in November 2002, with the aim of facilitating financial institutions' efforts to reduce risks of price fluctuations of their stock holdings. At first, the upper limit was set at two trillion yen, but it was raised to three trillion yen in March 2003. In September 2003, it was decided to extend the purchasing period up to the end of September 2004 (the amount of purchase was about 1.8 trillion yen as of September 20, 2003).