BOJ Suzuki warns recession could hurt banks via rising credit costs

MITO, Japan (Reuters) – Bank of Japan board member Hitoshi Suzuki said on Thursday the country’s financial institutions could see their profits hurt by rising credit costs if the economy slips into recession.

“Japan’s banking system remains stable. But we must continue to scrutinize how financial institutions, including regional ones, are doing business and what risks they are taking,” Suzuki said in a speech to business leaders in Mito, eastern Japan.

Under a policy dubbed yield curve control (YCC), the BOJ aims to guide short-term interest rates at minus 0.1 percent and long-term rates around zero percent.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.