In its semi-annual report on the financial system, published on Friday, the Bank of Japan (BoJ) states that “the Japanese financial system has maintained stability as a whole“.
Additional comments
Japanese banks have sufficient capital bases to adequately carry out financial intermediation activitieseven amid global tightening of financial conditions.
Despite the increased uncertainty about the financial sector in the United States and Europe, caused by the bankruptcies of US banks in March, the Japanese financial system has remained strong and resilient.
Vigilance against tail risks is still warranted.
Future developments remain highly uncertainsince the financial and capital markets have been nervous.
The quality of banks’ domestic and foreign loan portfolios has generally remained high, with some loans carrying high credit risk.
It is necessary to examine the risks of contraction and overheating of the financial system and properly address potential vulnerabilities to ensure the stability of the Japanese financial system.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
