Bank of Japan Gov. Masaaki Shirakawa called the meeting Monday after reiterating his concerns about corporate financing earlier in the day.
A growing number of Japanese firms, especially in the construction and real estate sectors, are reporting more difficulty securing loans, he said in a speech to business executives in Fukuoka, southern Japan.
Financial conditions "seem to have become less accommodative at an accelerating pace, particularly in terms of availability of funds, reflecting the turmoil in global financial markets," he said.
At the meeting, the policy board will likely finalize measures for smaller companies who need to raise operating capital for the year-end period and remainder of the fiscal year through March 2008, according to Kyodo news agency.
Likely steps include the introduction of a temporary lending facility to support banks' commercial loan operations.
The central bank may also begin to accept lower-graded commercial paper and corporate bonds as collateral from financial institutions.
The Bank of Japan is not expected to make changes anytime soon to its key interest rate, which now stands at a low 0.3%.
Japan - world’s No. 2 economy - in recession
Businesses need to take fresh look at loan papers
Business lending falls again
