Central Banks
BOJ Says Lenders Cut Rate Risk, System Sound After Global Stress
- Lenders’ resilience to rising rates is improving, BOJ says
- Central bank urges lenders to properly manage market risks
This article is for subscribers only.
Japanese banks have reduced interest-rate risk and the financial system remains sound despite stresses seen in the US and Europe, the central bank said.
“As banks have rebalanced their securities portfolios, the amount of yen and foreign currency interest-rate risk has been reduced,” the Bank of Japan said Friday in its semiannual Financial System Report. “Banks’ resilience to the risk of higher interest rates has been improving on the whole.”