Bank of Japan deputy governor Nakaso speaking in Tokyo

  • BOJ must take into account developments in economic activity and prices as well as financial conditions
  • BOJ easing has encouraged more active lending by banks
  • Continued monetary easing has exerted downward pressure on bank profits
  • The financial system is a transmission channel of monetary policy, so its stability forms the basis for sustainable economic growth
  • There is a limit to achieving financial stability by utilising prudential policy alone
  • No concern about a large-scale systemic risk in the financial system
  • Systemic risk indicators have been increasing for regional banks, but they have enough capital and liquidity
  • Growth strategy plays a role in fostering financial stability