- Analytics
- News and Tools
- Market News
- BOJ: Japan's financial system stable despite the pandemic risks on the economy
BOJ: Japan's financial system stable despite the pandemic risks on the economy
In its Financial System Report published on Thursday, the Bank of Japan (BOJ) said that Japan's financial system is stable as a whole though pandemic is having a big impact on the economy and finance.
Additional takeaways
Financial institutions in good shape as a whole, financial intermediation functioning smoothly.
Japan's financial system is likely to remain highly robust even in resurgence of covid-19, adjustment in global financial markets.
In event of substantial, rapid market adjustment, deterioration in financial institutions' soundness could pose further downward pressure on economy.
Attention should be paid to developments in real estate industry which increased lending since pre-pandemic.
Credit risk of overseas loans generally contained, but signs of deterioration in some portfolios severely affected by pandemic.
Potential destabilisation of foreign currency funding among risks to Japan’s financial system.
Even after pandemic subsides, low interest rates and structural factors will continue to exert downward pressure on financial institutions' profits.
Market reaction
USD/JPY is dropping to test 114.00, as the US Treasury yields recede gains amid worsening market mood. The spot was last seen trading at 114.01, down 0.20% on the day.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
