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MNI BRIEF: BOJ Sees Risk To Banks From Mixed Services Showing

(MNI) Tokyo
TOKYO (MNI)

Bank of Japan officials are paying close attention to the varying impact of the virus-related emergency on in-person services and the uneven consequences for vulnerable regional banks although they do not see any signs of growing risk to the financial system for now, MNI understands.

While the business environment remains severe for providers of face-to-face services amid the high rate of infections and self-imposed restrictions, some are succeeding in increasing sales or profits to repay debt in the view of BOJ officials.

The difference in performance between such services is expanding, which in turn will heighten the mixed impact on regional financial institutions, including vulnerable banks. However, the risk of destabilising the financial system and the function of financial intermediation remains small for now, bank officials expect.

MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com
MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com

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