The Bank of Japan (BoJ) published its Financial System Report on Wednesday. The report noted that “Japan’s financial system has been maintaining stability on the whole.”
The BoJ said that financial institutions need to remain vigilant against various risks materializing. Since the beginning of April, both domestic and international financial markets have experienced significant fluctuations.
Japan’s financial system vigilance
Given that Japanese banks hold a substantial amount of market risk associated with stockholdings, developments in asset prices require close attention. At the time of writing, the market is up 0.10% on the day, trading at 141.70.
Japan’s financial system remains largely stable despite recent market volatility. However, the BoJ emphasizes the need for vigilance among financial institutions concerning potential risks, particularly those related to market fluctuations and stockholdings.