Free Trial

MNI BRIEF: BOJ Eyes Indebted Firms Impact On Financial System

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

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.