Citing the latest data from the Association of Japanese Banks, Bloomberg reported on Tuesday that the country’s banks could suffer $1.1 trillion in losses on their government bonds if the Bank of Japan (BoJ) loosens its grip on 10-year bond yields.
“Japan’s financial regulator is examining the vulnerability of lenders to a sudden drop in government bonds should the country’s central bank abandon its ultra-easy monetary policy in the future,” according to Bloomberg.
Earlier this month, BoJ Deputy Governor Masayoshi Amamiya said the central bank could incur an unrealized loss of 28.6 trillion yen ($211 billion) on its Japanese government bond securities if the yield increases by 1 %,
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.
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