The current account system settles funds from transactions between financial institutions and from securities trades such as those in Japanese government bonds, by transferring balances on current accounts at the Bank of Japan. It also processes the final funds settlement of private payment systems. The JGB system handles the auction, issuance, and transfer of government bonds, and works with the current account system to settle bonds on a delivery versus payment basis1.

To use BOJ-NET, a financial institution must be a counterparty selected by the Bank of Japan. A financial institution that is not a counterparty settles through one that is2.

Notes

  1. Bank of Japan, "決済システムレポート 2024" (Payment and Settlement Systems Report 2024; our translation of the title), September 2024, page 9, section 1 (in Japanese). ↩

  2. Bank of Japan, "日本銀行が運営する資金決済システムに関する情報開示" (Disclosure on the funds settlement system operated by the Bank of Japan; our translation of the title), July 31, 2025, section 1-3, page 3 (in Japanese). That a financial institution that is not a counterparty asks a counterparty to settle comes from Figure 1 of Bank of Japan, "金融機関の決済リスク管理について" (On settlement risk management by financial institutions; our translation of the title), February 2000 (in Japanese). ↩