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MNI BRIEF: BOJ Eyes Indebted Firms Impact On Financial System

(MNI) LONDON
TOKYO (MNI)

Bank of Japan officials believe accumulated debts of firms in the accommodation and hospitality sectors of the Japanese economy will peak around current levels, although they see many still facing tough financing conditions ahead and there remains a risk of a degree of financial instability even as the economy recovers, MNI understands.

Officials will continue to monitor the situation ahead of the 6-monthly Financial System Report in mid-April. In the October report, the BOJ judged that businesses had the necessary liquidity to get through the current fiscal year, helped by the BOJ and the government funding measures, and the focus is shifting to how credit costs and stability of financial system will evolve into fiscal 2021.

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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