MNI DATA IMPACT: Japan H’hold Financial Assets At Record High

The balance of financial assets held by Japanese households posted a record high of JPY1,901 trillion at the end of September, up 2.7% for the second straight rise, according to preliminary fund circulation data from the Bank of Japan released on Monday.

The rise in financial assets was mainly due to the increase of cash and deposits helped by the government cash distribution, and the tendency for people to save money in a crisis such as the pandemic.

The balance of cash and deposits held by households at the end of September also posted a record high of JPY1,034 trillion, up 4.9% from a year earlier.

Financial assets held by non-financial firms at the end of September totaled JPY1,215 trillion, up 6.1% y/y, and the balance of cash and deposits held by non-financial firms was at a record high of JPY309 trillion, up 14.3% y/y.

The data also showed that the balance of loans extended by financial firms totaled JPY937 trillion, up 5.6% y/y.

The balance of government bonds at the end of September totaled JPY1,201 trillion, up 5.3% y/y.

Government bonds held by the BOJ also posted a record high of JPY542 trillion, up 8.3% y/y and accounting for 45.1% of total government debt, the single largest share.

The balance of government bonds held by non-Japanese totaled JPY152 trillion, up 4.4% y/y and accounting for 12.6% of total government bonds, down from 12.8% at the end of June.