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MNI BRIEF: BOJ Warns Of Higher Credit Costs, Insufficient View

(MNI) LONDON
TOKYO (MNI)

Credit costs could increase considerably, given the prolonged spread of Covid-19, the Bank of Japan warned in a report published Tuesday, although noting any increase will depend on the roll out of the vaccine and how the economy picks up.

The central bank also warned that there continued to be cases where financial institutions had an insufficient understanding of the financial condition of borrowers; for example, loans were downgraded from normal to "de facto bankrupt" or below due to the detection of window-dressing.

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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