Japan's financial system remains stable as a whole says the report. This is significant, as an argument often put forward to curtail easy monetary policy is that financial system imbalances and instability are increasing. This finding would seem to refute this argument (if you can trust a central bank review like this).
More (Headlines via Reuters):
- financial intermediation is being fulfilled smoothly, underpinned by financial institutions' sound health
- Japan's financial system to remain 'highly robust' even if resurgence of covid, rise in US long-term rates hit economy, markets
- in event of substantial, rapid adjustment in markets, hit to financial institutions' health could exert downward pressure on economy
- Ukraine crisis on Japan's financial system likely to be limited for now but high uncertainty on future developments
- attention should be paid to chance impact of Ukraine crisis on financial system will become larger
- delay in Japan's recovery could have adverse effect on loans to firms that had been hit hard by the pandemic
