The Bank of Japan on Thursday launched a ¥1.22 trillion emergency loan program to help financial institutions provide corporate financing amid the global credit crunch.

Commercial banks and other institutions that bid for the low-interest funds will borrow the money between next Wednesday and April 3. The extra funds are expected to enhance the banks' lending capacity during the period before and after the March 31 end of the 2008 business year, when credit conditions will tighten as demand for funds rises.

Japan Times