“Financial system remains stable despite the impact of the spread of corona infection” Bank of Japan Report October 23, 5:58
The Bank of Japan has compiled a report analyzing the impact of the spread of the new coronavirus on the financial system.
Although the spread of the infection has had a major economic and financial impact, Japan's financial system remains stable as a whole.
The Bank of Japan has summarized the situation of the domestic financial system in a report called "Financial System Report", and the latest report released on the 22nd analyzes the impact of the spread of the new coronavirus and future risks. ..
According to the report, the Japanese financial system "maintains stability as a whole", although the spread of infection has a great impact on the domestic and overseas economies and financial aspects.
The reason for this is that financial institutions have a solid financial base in addition to the government's large-scale fiscal policy and cash flow support measures.
As future risks, we pointed out the rise in costs related to bad debts of companies and the deterioration of profit and loss related to investment in securities such as stocks due to the prolonged economic downturn.
On top of that, the Bank of Japan is requesting that financial institutions ensure the soundness of their management by making appropriate provisions themselves so that they can work to support the companies to which they lend.