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Bank of Japan attempts to stabilise financial institutions

The Bank of Japan (BoJ) is attempting to stabilise Japan's financial institutions by ploughing 15 trillion yen ($183 billion) into the country's banking system.

Since the Tohuku Pacific Earthquake, the BoJ stated it has been trying to work out the effects of the natural disaster on the money markets and the operations of the nation's financial institutions.

The BoJ has upped the amount of its Asset Purchase Programme by around five trillion yen - taking this total to nearly 40 trillion yen.

Such increases are part of the bank's attempt to bring some stability to the banking system by smoothing the settlement of funds and providing increased liquidity.

The central bank has also authorized a same-day funds-supplying procedure - costing seven trillion yen - and a future-day-start funds operation worth three trillion yen.

There are currently fears in Japan that a second explosion at the Fukushima Dai-ichi nuclear plant, which was damaged in the earthquake, could result in a nuclear disaster.

By Gary Cooper