Financial assets such as deposits and stocks held by individuals exceeded 1900 trillion yen in total as of the end of September, a record high, according to the Bank of Japan's statistics.
Private companies are also increasing cash and deposits, and as the outbreak of the new coronavirus increases uncertainty about the future of the economy, it can be seen that they are trying to increase their cash reserves.
According to the "Financial Circulation Statistics" released by the Bank of Japan on the 21st, the total amount of deposits and stocks held by individuals and financial assets such as insurance was 1901 trillion yen as of the end of September.
It increased by 17 trillion yen, or 0.9%, from three months ago, setting a new record high.
The largest amount of household financial assets is "cash and deposits" totaling 1034 trillion yen, accounting for 54% of the total.
As of the end of September, private sector companies' cash and deposits amounted to 309 trillion yen and borrowings amounted to 458 trillion yen, both record highs.
As the outbreak of the new coronavirus raises uncertainty about the future of the economy, we can see individuals and companies trying to increase their cash reserves.
On the other hand, the statistics show that the outstanding amount of government bonds issued reached 1201 trillion yen as of the end of September, of which 45%, or 542 trillion yen, was held by the Bank of Japan.
As a result of pursuing the purchase of government bonds to supply a large amount of funds through large-scale monetary easing, the BOJ's holdings of government bonds continue to increase.