While it has been pointed out that the BOJ's negative interest rate policy will lead to worsening profits of local banks, Kuroda said at the House of Councilors Budget Committee that the financial system will stabilize in anticipation of a longer period of large-scale monetary easing measures. I showed the idea that I would like to pay more attention to.
It has been pointed out that the negative interest rate policy introduced by the Bank of Japan in 2016 will lead to a deterioration in profits of regional financial institutions such as regional banks due to a decline in lending rates.
Governor Kuroda said at the House of Councilors Budget Committee on the 24th that the current situation of regional financial institutions is "the low interest rate environment has continued for a long time, and there are structural factors such as a decrease in the population and the number of companies," and the severe business environment. Showed the recognition that is continuing.
He added, "We believe that the financial system remains stable as a whole, but given that monetary easing will continue for quite some time in the future, we need to pay more attention to trends in the financial system." He expressed his desire to pay more attention to the stability of the financial system in anticipation of a longer period of large-scale monetary easing measures.
At the monetary policy decision meeting last week, when the Bank of Japan "inspected" monetary easing measures, it was newly decided to receive reports from the "Financial Institutions Bureau", which is responsible for the stability of the financial system, four times a year. The statement emphasizes the BOJ's stance of balancing prices and financial system stability.