© Reuters. FILE PHOTO: A man walks past Bank of Japan’s headquarters in Tokyo, Japan, June 17, 2022. REUTERS/Kim Kyung-Hoon
TOKYO (Reuters) – Japan’s banking system remains stable as a whole but rising overseas interest rates could worsen the creditworthiness of highly leveraged firms, the Bank of Japan said on Friday.
“Financial institutions’ valuation losses on securities have increased recently. Such losses could increase further depending on future interest rate developments,” the central bank said in a semi-annual report on Japan’s financial system.