IDEAS home Printed from https://ideas.repec.org/a/oup/rasset/v15y2025i3-4p332-376..html
   My bibliography  Save this article

To Lend or Not to Lend: The Bank of Japan’s ETF Purchase Program and Securities Lending

Author

Listed:
  • Mitsuru Katagiri
  • Junnosuke Shino
  • Koji Takahashi

Abstract

This study investigates the role of passive investors in the equity lending market by utilizing the expansion of exchange-traded fund (ETF) markets due to the Bank of Japan’s (BOJ) ETF purchasing program. We find that the BOJ’s purchases increase equity prices particularly for stocks with limited availability in the equity lending market. However, over the longer term, the BOJ’s cumulative purchases reduce lending fees, thus weakening the program’s effects. These findings suggest that ETF managers supply stocks that constitute ETFs to the equity lending market, and the lending behavior of ETFs, influenced by the BOJ’s program, alleviates short-selling constraints. (JEL E52, E58, G12, G14)

Suggested Citation

  • Mitsuru Katagiri & Junnosuke Shino & Koji Takahashi, 2025. "To Lend or Not to Lend: The Bank of Japan’s ETF Purchase Program and Securities Lending," The Review of Asset Pricing Studies, Society for Financial Studies, vol. 15(3-4), pages 332-376.
    • Handle: RePEc:oup:rasset:v:15:y:2025:i:3-4:p:332-376.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/rapstu/raaf008
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:rasset:v:15:y:2025:i:3-4:p:332-376.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/raps .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.