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BOJ Tops Insurers to Become Biggest Creditor to Japan Government

Japan’s central bank became the biggest creditor to the government for the first time on record, reflecting a shift driven by unprecedented easing to spur inflation in the world’s third-biggest economy.

The Bank of Japan surpassed insurance companies as the largest holder of Japanese government bonds at the end of March among categories tracked by the central bank, it said in a flow of funds report released today in Tokyo. The BOJ held 20.1 percent of the bonds, more than the 19.4 percent owned by insurers, the first time it has held the highest share in comparable data back to 1997.