The Bank of Japan has indicated that the impact on the domestic financial system will be limited to the sudden bankruptcy caused by the unrealized loss of bonds held by American banks due to rapid interest rate hikes.
On the 14th, the Bank of Japan announced the policy of the so-called "Bank of Japan Examination", a survey to grasp the financial situation of financial institutions to be conducted in the new fiscal year.
In relation to this, regarding the impact of the bankruptcies of American banks against the backdrop of rapid interest rate hikes on Japan's financial system and financial institutions, the Bank of Japan said, ``Domestic financial institutions have sufficient capital and risk We believe the impact on Japan's financial system will be limited at this point, as only a small amount of assets have been exposed to volatility."
However, some financial institutions are actively engaged in overseas business and investment activities, so we would like to carefully monitor the risk situation, including the impact of the bankruptcy of an American bank.
On the other hand, the Bank of Japan plans to resume full-fledged on-site inspections of financial institutions, which had been refrained from due to the influence of the new corona, from the new fiscal year.
In the new fiscal year, we will focus on the risk of expanding valuation losses on securities due to interest rate fluctuations and confirm the impact on earnings.