The Bank of Japan (BOJ) said in a statement on Tuesday that “financial institutions have enough capacity to absorb losses.”
Additional conclusions
The fluid functioning of financial intermediation has even remained in the midst of global changes in financial and economic conditions.
The main financial institutions have strengthened the profitability of their deposits and loan collection activities in the country, taking into account the increase in YEN interest rates.
Regional financial institutions have improved the profitability of their deposits and loans in the country due to the increase in YEN interest rates.
Some financial institutions faced challenges to estimate the impact of interest rates on their profitability.
Many financial institutions expected credit costs to remain more or less stable, although some registered large credit losses related to the financing of global commercial activities.
Regarding risk management, there were some cases in which financial institutions had problems evaluating the financial and financing of borrowers.
Source: Fx Street

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