<\/p>\n
It warns that if interest rates rise sharply in a short period of time, financial institutions could incur latent losses on their securities holdings.<\/p>\n
Japanese financial institutions\u2019 profitability has decreased significantly in the past 25 years, making them vulnerable to potential losses from any sharp rises in interest rates, the central bank said.<\/p>\n
While many companies increased long-term, fixed-rate loans to take advantage of Japan\u2019s ultra-low interest rates, some have suffered sluggish profits, the BOJ said in a report.<\/p>\n
Banks\u2019 lending to such low-profit firms may turn sour as interest rates begin to rise, the BOJ said in the report, which looked into the impact prolonged monetary easing had on Japan\u2019s banking system.<\/p>\n
\u201cFinancial institutions\u2019 profitability has decreased sharply in the past 25 years,\u201d with some regional lenders becoming more vulnerable to stress, the report said.<\/p>\n
\u201cIf interest rates rise sharply in a short period of time, financial institutions could incur latent losses on their securities holdings,\u201d which in turn could discourage them from lending, it said.<\/p>\n
The report was compiled as part of a comprehensive review the BOJ is conducting on the pros and cons of past monetary easing steps.<\/p>\n
<\/p>","protected":false},"excerpt":{"rendered":"
It warns that if interest rates rise sharply in a short period of time, financial institutions could incur latent losses on their securities holdings. Japanese financial institutions\u2019 profitability has decreased significantly in the past 25 years, making them vulnerable to potential losses from any sharp rises in interest rates, the central bank said. While many […]<\/p>\n","protected":false},"author":1,"featured_media":1895,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1894","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bez-rubriki"],"featured_image_src":{"landsacpe":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/06\/Bank-of-Japan-55-1140x445.jpeg",1140,445,true],"list":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/06\/Bank-of-Japan-55-463x348.jpeg",463,348,true],"medium":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/06\/Bank-of-Japan-55-300x200.jpeg",300,200,true],"full":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/06\/Bank-of-Japan-55-scaled.jpeg",2560,1710,false]},"_links":{"self":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/1894","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/comments?post=1894"}],"version-history":[{"count":1,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/1894\/revisions"}],"predecessor-version":[{"id":1896,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/1894\/revisions\/1896"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media\/1895"}],"wp:attachment":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media?parent=1894"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/categories?post=1894"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/tags?post=1894"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}