BOJ minutes: to watch risk of Europe destabilising

(For more stories on the Japanese economy, click [ID:nECONJP])

TOKYO, June 18 (Reuters) - Some Bank of Japan board members said the central bank should watch the risk of financial conditions in Japan becoming strained if the European market destabilised more and caused further yen rises and falls in share prices, minutes of its May 20-21 meeting showed.

Board members shared the view that strains in European markets had so far had a limited impact on Japanese financial markets, and said financial conditions in Japan had continued to show signs of easing.

At the meeting the central bank outlined a new loan scheme aimed at supporting growth industries to boost the country's potential economic growth. [ID:nSGE64KOAS]

The BOJ decided at its policy meeting this week to lend up to 3 trillion yen ($32.99 billion) to commercial banks in the new loan scheme, under which it will offer one-year loans at 0.1 percent interest rate. [ID:nTKZ006460] (Reporting by Tetsushi Kajimoto)